Simple interest

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What is simple interest?

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Simple interest is a method of calculating the interest charged or earned on a principal amount over a specific period of time, typically expressed as a percentage.

Tags

CCSS.7.RP.A.3

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What is the formula for calculating simple interest?

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The formula for simple interest is I = P * r * t, where I is the interest, P is the principal amount, r is the rate of interest (as a decimal), and t is the time in years.

Tags

CCSS.7.RP.A.3

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If you deposit $500 at a 4% interest rate for 3 years, how much interest will you earn?

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$60

Tags

CCSS.7.RP.A.3

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What does P stand for in the simple interest formula?

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P stands for the principal amount, which is the initial sum of money deposited or borrowed.

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If Lisa earned $20 in interest after 1 year at a 5% interest rate, how much did she deposit?

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$400

Tags

CCSS.7.RP.A.3

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What does I stand for in the simple interest equation?

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I stands for Interest ($), which is the amount earned or paid for the use of money.

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If Amy deposits $200 for 5 years at a 5% interest rate, how much interest does she earn?

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$50

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CCSS.HSF.BF.A.2

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What does r stand for in the simple interest equation?

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r stands for Rate (% as decimal), which is the percentage of interest charged or earned.

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CCSS.6.EE.B.7

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Howard borrowed $4,000 at an 8% interest rate for 2 years. How much interest will he pay?

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$640

Tags

CCSS.7.RP.A.3

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How do you convert a percentage to a decimal for the simple interest formula?

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

Tags

CCSS.7.RP.A.3