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, and t is time.

Front

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

Back

P represents the principal amount, which is the initial sum of money borrowed or invested.

Front

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

Back

r represents the interest rate, 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, usually in years.

Front

If Jerry borrowed $4,000 for 5 years at 6% simple interest, how much interest will he pay?

Back

$1,200

Front

If the principal is $350, the interest rate is 2.5%, and the time is 3 years, how much interest is earned?

Back

$26.25

Front

What is the total amount to be paid back if Olivia spends $7,400 on furniture at 9.5% simple interest for 8 years?

Back

$13,024

Front

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

Back

Interest

Front

How do you convert a percentage to a decimal for calculations?

Back

Divide the percentage by 100. For example, 6% becomes 0.06.

Front

If you have a principal of $1,000, an interest rate of 5%, and a time of 4 years, what is the interest?

Back

$200