Simple Interest Practice

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is the principal amount, R is the rate of interest per year (in decimal), and T is the time in years.

Front

If a person borrows $1200 at an interest rate of 7% per year for 5 years, what is the Simple Interest?

Back

The Simple Interest is $420.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 7% becomes 0.07.

Front

What is the total value of an investment after earning Simple Interest?

Back

The total value of an investment after earning Simple Interest can be calculated using the formula: Total Value = Principal + Simple Interest.

Front

Calculate the Simple Interest on a principal amount of $500 at an interest rate of 5% per year for 3 years.

Back

The Simple Interest is $75.

Front

What is the total value of an investment of $200 at a 3% Simple Interest rate for 5 years?

Back

The total value is $230.

Front

If a loan of $2000 has an interest rate of 6% per year for 4 years, what is the Simple Interest?

Back

The Simple Interest is $480.

Front

What is the Simple Interest earned on a sum of $1000 invested at an interest rate of 4% per year after 3 years?

Back

The Simple Interest earned is $120.

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal refers to the initial amount of money that is borrowed or invested before any interest is added.