Simple Interest Practice

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula: SI = P * r * t, where P is the principal, r is the rate of interest, and t is the time in years.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest (SI) is: SI = P * r * t, where P is the principal amount, r is the rate of interest (in decimal), and t is the time (in years).

Front

If you invest $350 at an interest rate of 2.5% for 3 years, how much interest will you earn?

Back

$26.25

Front

Olivia buys furniture for $7400 on credit with a 9.5% interest rate. How much interest will she pay after 8 years?

Back

$5,624

Front

Jack deposited $1,400 and earned $294 in interest after 3 years. What is the simple interest rate?

Back

7%.

Front

Emily’s parents put $1500 in her account at an 8.25% interest rate. What will be the interest after 18 years?

Back

$2,227.50

Front

Twelve years ago, Claire deposited $1,800 at 2.5% interest. How much interest did she earn?

Back

$540.

Front

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

Back

Principal is the initial amount of money that is invested or loaned, before any interest is added.

Front

What does 'interest rate' mean?

Back

The interest rate is the percentage at which interest is calculated on the principal amount, usually expressed annually.

Front

What does 'time' refer to in the Simple Interest formula?

Back

Time refers to the duration for which the money is invested or borrowed, typically measured in years.