Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is the principal amount, R is the rate of interest (in decimal), and T is the time (in years).

Front

If Layla borrowed $42000 at a 4% interest rate for 3 years, how much interest will she pay?

Back

$5040

Front

How do you convert months into years for calculating Simple Interest?

Back

To convert months into years, divide the number of months by 12. For example, 18 months = 18/12 = 1.5 years.

Front

Calculate the Simple Interest on $12400 at 10% for 18 months.

Back

$1860

Front

What is the principal amount if the Simple Interest is $28, the rate is 4%, and the time is 6 months?

Back

$1400

Front

If Jessica paid $31500 in interest on an $84000 loan over 10 years, what was her interest rate?

Back

3.75%.

Front

What is the relationship between principal, rate, and time in Simple Interest?

Back

The relationship is linear; if any of the three variables (principal, rate, or time) increases, the Simple Interest will also increase proportionally.

Front

What does it mean if the interest rate is expressed as a percentage?

Back

It means the interest is calculated as a percentage of the principal amount for a specific time period.

Front

How do you find the total amount to be paid back after taking a loan with Simple Interest?

Back

Total Amount = Principal + Simple Interest.