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 is I = P * r * t, where I is the interest, P is the principal, r is the rate of interest per year, and t is the time in years.

Front

What does 'P' represent in the Simple Interest formula?

Back

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

Front

What does 'r' represent in the Simple Interest formula?

Back

r represents the rate of interest per year, expressed as a decimal.

Front

What does 't' represent in the Simple Interest formula?

Back

t represents the time in years for which the money is borrowed or invested.

Front

If you deposit $1,000 at a 5% simple interest rate for 3 years, how much interest will you earn?

Back

You will earn $150 in interest.

Front

How do you convert months to years?

Back

To convert months to years, divide the number of months by 12.

Front

If you have $2,000 at a 4% simple interest rate for 5 years, what will be the total amount after 5 years?

Back

The total amount will be $2,400.

Front

What is the total amount if the principal is $1,500, the interest is $225, and the time is 3 years?

Back

The total amount is $1,725.

Front

What is the interest earned on a loan of $2,500 at a 6% interest rate for 4 years?

Back

The interest earned is $600.