Simple Interest Practice

Front

What is the formula for Simple Interest?

Back

Front

If you invest $1000 at a 5% interest rate for 3 years, how much interest will you earn?

Back

Front

What does 'principal' mean in the context of simple interest?

Back

The principal is the initial amount of money that is invested or borrowed before interest.

Front

How do you convert years into months for the simple interest formula?

Back

Multiply the number of years by 12. For example, 2 years = 2 \times 12 = 24 months.

Front

What is the rate of interest in the formula I = prt?

Back

The rate (r) is the percentage of the principal that is paid as interest for each time period.

Front

If you have a loan of $5000 at an interest rate of 6% for 4 years, what is the total interest paid?

Back

Front

What is the total amount to be paid back on a loan of $2000 at 10% interest after 5 years?

Back

Front

How do you find the time in years if you know the interest, principal, and rate?

Back

Front

What is the meaning of 'interest' in finance?

Back

Interest is the cost of borrowing money or the return on investment for saving money.

Front

If you earned $240 in interest on a $1200 investment over 2 years, what was the interest rate?

Back