Atkins Simple Interest Practice

Front

What is the formula for calculating simple interest?

Back

I = P * r * t, where I is interest, P is principal, r is rate (as a decimal), and t is time (in years).

Front

What does the 'P' in the simple interest formula represent?

Back

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

Front

What does the 'r' in the simple interest formula represent?

Back

The rate of interest, expressed as a decimal.

Front

What does the 't' in the simple interest formula represent?

Back

Time, in years.

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

If you borrow $8000 at a 5% interest rate for 3 years, what is the total interest paid?

Back

$1200.

Front

What is the total amount to be paid back if you borrow $8000 at 5% interest for 3 years?

Back

$9200.

Front

If you take a loan of $10,550 at 3% interest for 10 years, what is the total amount to be paid back?

Back

$13,715.

Front

What is simple interest?

Back

Interest calculated only on the principal amount, not on the interest accrued.

Front

If the principal is $5000, the rate is 4%, and the time is 2 years, what is the simple interest?

Back

$400.