Simple Interest

Front

What does the 'r' in the interest formula stand for?

Back

rate

Front

The Principal and Interest are always___________.

Back

money

Front

Starting money = $350. Interest rate = 2.5% Time = 3 years. How much interest?

Back

$26.25

Front

The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a_______.

Back

decimal

Front

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

Back

$1392

Front

What is the formula for calculating Simple Interest?

Back

Simple Interest = Principal × Rate × Time

Front

If the Principal is $500 and the interest rate is 4% for 5 years, what is the total interest earned?

Back

$100

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

What is the total amount to be paid back if the Principal is $1000, the interest rate is 5%, and the time is 3 years?

Back

$1150

Front

What is the difference between Simple Interest and Compound Interest?

Back

Simple Interest is calculated only on the principal amount, while Compound Interest is calculated on the principal plus any interest earned.