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 Simple Interest?

Back

The formula for Simple Interest is I = Prt, where I is the interest, P is the principal, r is the rate of interest, and t is the time.

Front

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

Back

'P' represents the principal amount, which is the initial amount of money borrowed or deposited.

Front

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

Back

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

Front

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

Back

't' represents the time period for which the money is borrowed or invested, typically measured in years.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

If the interest rate is 4%, what is it as a decimal?

Back

0.04

Front

How much interest will you earn on a principal of $500 at a rate of 5% for 2 years?

Back

$50 (I = Prt = 500 * 0.05 * 2).

Front

What is the total amount after earning simple interest?

Back

Total Amount = Principal + Interest.

Front

If you deposit $200 at a 3% interest rate for 3 years, how much total money will you have?

Back

$212 (Interest = 200 * 0.03 * 3 = $18; Total = 200 + 18).