MATH.7.13E- 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 calculating simple interest?

Back

The formula for simple interest is I = PRT, where I is interest, P is principal, R is rate, and T is time.

Front

How do you convert a decimal to a percent?

Back

To convert a decimal to a percent, multiply the decimal by 100 and add a percent sign.

Front

If you have time in months, how do you convert it to years?

Back

Divide the number of months by 12.

Front

What does 'P' represent in the simple interest formula I = PRT?

Back

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

Front

What does 'R' represent in the simple interest formula I = PRT?

Back

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

Front

What does 'T' represent in the simple interest formula I = PRT?

Back

'T' represents the time the money is borrowed or invested, measured in years.

Front

Calculate the simple interest for a principal of $1,000, a rate of 5%, and a time of 3 years.

Back

$150

Front

If Julie borrowed $3,500 at a 7.5% interest rate for 3 years, how much interest will she pay?

Back

$787.50

Front

What is the principal in a simple interest calculation?

Back

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