Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is a method of calculating the interest charge on a loan or the interest earned on an investment based on the principal amount, the interest rate, and the time period.

Front

What is the formula for calculating Simple Interest?

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

Front

If Mark took out a loan for $25,690 at a simple interest rate of 5.2% for 5 years, how much interest will he pay?

Back

$6,679.40

Front

How much interest did Claire earn on her $1,800 deposit at 2.5% simple interest over 12 years?

Back

$540

Front

What is the total interest paid on a home loan of $195,000 at 4.3% simple interest after 30 years?

Back

$251,550

Front

If Emily’s parents deposited $1,500 at an 8.25% simple interest rate for 18 years, what will be the total balance?

Back

$3,727.50

Front

How much simple interest will Rob earn on $5,000 at 4.25% after 6 months?

Back

$106.25

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal is the initial amount of money that is either invested or borrowed, before any interest is added.

Front

What does 'Rate' refer to in Simple Interest calculations?

Back

Rate refers to the percentage of interest charged or earned on the principal amount, typically expressed as an annual rate.

Front

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

Back

Time represents the duration for which the money is borrowed or invested, usually measured in years.