Simple interest

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

In the simple interest formula I = P * r * t, what does 'P' represent?

Back

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

Front

In the simple interest formula I = P * r * t, what does 'r' represent?

Back

r represents the interest rate, expressed as a decimal.

Front

In the simple interest formula I = P * r * t, what does 't' represent?

Back

t represents the time the money is invested or borrowed, typically in years.

Front

If you pay your loan quarterly, how many times a year do you make your payment?

Back

4 times a year.

Front

Convert 9 months into years.

Back

0.75 years.

Front

Calculate the simple interest for a principal of $350 at an interest rate of 2.5% over 3 years.

Back

$26.25.

Front

Emilio borrows $1200 at an 8% simple interest rate for 2 years. How much total will he pay back?

Back

$1392.

Front

What is the total amount paid back if the principal is $1000, the interest rate is 5%, and the time is 4 years?

Back

$1200.

Front

If the principal is $500 and the interest earned is $50 over 2 years, what is the interest rate?

Back

5%.