Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding.

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 per year, 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 initial amount of money borrowed or deposited.

Front

If you borrow $1200 at an interest rate of 8% for 2 years, how much interest do you pay?

Back

The interest paid is $192.

Front

How do you calculate the total amount to be paid back after borrowing money?

Back

Total Amount = Principal + Interest.

Front

What is the interest earned on a principal of $800 at a rate of 3.5% for 6 months?

Back

The interest earned is $14.

Front

If you inherit $50,000 at a 2% interest rate, how much interest will you earn by age 21 if you are currently 12?

Back

You will earn $9,000 in interest.

Front

What is the interest earned on $350 at a rate of 2.5% over 3 years?

Back

The interest earned is $26.25.

Front

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

Back

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

Front

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

Back

t represents the time the money is borrowed or invested, measured in years.