Simple interest

Front

What is the formula for simple interest?

Back

I = P * r * t

Front

How much interest will Howard pay if he borrows $4,000 at an 8% interest rate for 2 years?

Back

$640

Front

What does the 'r' stand for in the simple interest equation?

Back

Rate (% as decimal)

Front

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

Back

Principal

Front

How much interest does Amy earn on a $200 deposit for 5 years at 5% interest?

Back

$50

Front

What is 'I' in the simple interest formula?

Back

Interest earned or paid.

Front

If the principal is $1,000, the rate is 6%, and the time is 3 years, what is the simple interest?

Back

$180

Front

What is the relationship between principal, rate, time, and interest in simple interest?

Back

Interest is directly proportional to principal, rate, and time.

Front

If you want to find the total amount to be paid back after borrowing, what formula would you use?

Back

Total Amount = Principal + Interest

Front

What happens to the interest if the time period is doubled while keeping principal and rate constant?

Back

The interest will also double.