Simple interest

Front

What does the I stand for in the simple interest equation?

Back

Interest ($)

Front

What does the P stand for in the simple interest equation?

Back

Principal

Front

What is the formula for calculating simple interest?

Back

Simple Interest (SI) = Principal (P) × Rate (R) × Time (T) / 100

Front

If you deposit $1000 at a 5% interest rate for 3 years, how much interest will you earn?

Back

$150

Front

What is the principal amount in a loan?

Back

The principal amount is the initial sum of money borrowed or invested.

Front

How do you convert a percentage to a decimal for calculations?

Back

Divide the percentage by 100.

Front

If you borrow $2000 at an interest rate of 6% for 4 years, how much total will you pay back?

Back

$2480 ($2000 principal + $480 interest)

Front

What is the total amount paid back on a loan?

Back

Total Amount = Principal + Interest

Front

How do you calculate the interest earned on an investment?

Back

Interest = Principal × Rate × Time

Front

What is the time period in the simple interest formula?

Back

The time period is the duration for which the money is borrowed or invested, usually in years.