Percent of Change and Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated only on the principal amount borrowed or invested, not on the interest accrued.

Front

How do you calculate Simple Interest?

Back

Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating the total amount to be paid back with Simple Interest?

Back

Total Amount = Principal + Simple Interest.

Front

If you borrow $1000 at an interest rate of 5% for 3 years, what is the Simple Interest?

Back

Simple Interest = $1000 × 0.05 × 3 = $150.

Front

What is Percent of Change?

Back

Percent of Change is a way to express the difference between an old value and a new value as a percentage of the old value.

Front

How do you calculate Percent of Change?

Back

Percent of Change = ((New Amount - Original Amount) / Original Amount) × 100.

Front

If the original amount is 50 and the new amount is 75, what is the Percent of Change?

Back

Percent of Change = ((75 - 50) / 50) × 100 = 50%.

Front

What does Principal mean in finance?

Back

Principal is the original sum of money borrowed or invested, excluding any interest or profits.

Front

What is the relationship between Principal and Interest?

Back

Principal is the amount of money on which interest is calculated, while Interest is the cost of borrowing that money.

Front

If you have a Principal of $2000 and an interest rate of 10% for 1 year, how much total will you pay back?

Back

Total Amount = $2000 + ($2000 × 0.10 × 1) = $2200.