simple interest 2 TOTAL ONLY

Front

What is simple interest?

Back

Simple interest is a way to calculate 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?

Back

The formula for calculating simple interest is I = P * r * t, where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years.

Front

If you borrow $1000 at a 5% simple interest rate for 3 years, how much interest will you pay?

Back

$150

Front

What does 'principal' mean in the context of simple interest?

Back

Principal is the initial amount of money borrowed or invested before interest.

Front

How do you convert months into years for the simple interest formula?

Back

To convert months into years, divide the number of months by 12.

Front

If the interest rate is 10% and the principal is $2000, what is the interest for 1 year?

Back

$200

Front

What is the total amount to be paid back if you borrow $500 at 4% simple interest for 2 years?

Back

$520

Front

How does time affect the amount of simple interest?

Back

The longer the time period, the more interest will accumulate, as interest is calculated based on the time the money is borrowed or invested.

Front

What is the total amount to be paid back for a loan of $1200 at 8% simple interest for 2 years?

Back

$1392

Front

If Kasey buys a house for $64000 at a 6% simple interest rate for 180 months, what is the total cost?

Back

$121,600