simple Interest

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What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula I = PRT, where I is the interest, P is the principal, R is the rate of interest, and T is the time in years.

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What does the formula I = PRT represent?

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The formula I = PRT represents the calculation of Simple Interest, where I is the interest earned, P is the principal amount, R is the rate of interest per year, and T is the time in years.

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How do you calculate Simple Interest?

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To calculate Simple Interest, use the formula I = PRT. Multiply the principal amount (P) by the rate of interest (R) and the time (T) in years.

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If Jenna borrowed $5,000 for 3 years and paid $1,350 in interest, what was her interest rate?

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Jenna's interest rate was 9%.

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What does the 'P' in I = PRT stand for?

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The 'P' in I = PRT stands for Principal, which is the initial amount of money borrowed or invested.

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What does the 'R' in I = PRT stand for?

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The 'R' in I = PRT stands for Rate of interest, which is the percentage of the principal charged as interest per year.

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What does the 'T' in I = PRT stand for?

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The 'T' in I = PRT stands for Time, which is the duration in years for which the money is borrowed or invested.

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Convert 0.37 to a percentage.

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0.37 as a percentage is 37%.

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How much simple interest is earned on $4,500 at 5.5% interest per year after 2 years?

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The simple interest earned is $495.

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What is the principal amount in the formula I = PRT?

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The principal amount (P) is the initial sum of money that is either borrowed or invested.