Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated only on the principal amount, or the original amount of money borrowed or invested.

Front

What is the formula for calculating Simple Interest?

Back

The formula is I = P * r * t, where I is the interest, P is the principal, r is the rate of interest, and t is the time in years.

Front

What does 'P' represent in the Simple Interest formula?

Back

P represents the principal, which is the amount of money borrowed or deposited.

Front

What does 'r' represent in the Simple Interest formula?

Back

r represents the rate of interest, expressed as a decimal.

Front

What does 't' represent in the Simple Interest formula?

Back

t represents the time in years for which the money is borrowed or invested.

Front

If you borrow $1,000 at a 5% interest rate for 2 years, how much interest do you pay?

Back

You pay $100 in interest.

Front

If you have $500 at a 3% interest rate for 4 years, how much interest do you earn?

Back

You earn $60 in interest.

Front

What is the principal in a loan of $2,000 at 6% interest for 3 years?

Back

The principal is $2,000.

Front

If the interest earned is $150 and the principal is $1,000, what is the interest rate if the time is 2 years?

Back

The interest rate is 7.5%.

Front

What is the total amount to be paid back if you borrow $1,500 at 4% interest for 5 years?

Back

The total amount to be paid back is $1,800.