Simple Interest Practice

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount of a loan or investment, based on a fixed percentage over a specific period of time.

Front

What is the formula for calculating Simple Interest?

Back

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

Front

Calculate the Simple Interest on a loan of $2000 at an interest rate of 6% per year for 4 years.

Back

$480

Front

Calculate the Simple Interest on a loan of $1000 at an interest rate of 8% per year for 2 years.

Back

$160

Front

Determine the total value of an investment of $2000 at a 3% simple interest rate for 10 years.

Back

$2600

Front

Calculate the Simple Interest on a principal amount of $500 at an interest rate of 5% per year for 3 years.

Back

$75

Front

If you invest $1000 at an interest rate of 4% per year, how much Simple Interest will you earn after 3 years?

Back

$120

Front

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

Back

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

Front

What does 'rate of interest' mean?

Back

The rate of interest 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 borrowed or invested, typically measured in years.