Simple Interest Concepts

Front

P in the simple interest formula

Back

Principal amount (initial loan or investment)

Front

R in the simple interest formula

Back

Interest rate (as a decimal → divide % by 100)

Front

T in the simple interest formula

Back

Time (in years)

Front

The time variable represents time in years in the simple interest formula.

Back

Time is measured in years.

Front

If the principal amount is increased in the simple interest formula, the total interest earned or paid increases.

Back

Higher principal amounts lead to more interest.

Front

If the interest rate is increased in the simple interest formula, the total interest earned or paid increases.

Back

A higher interest rate results in greater interest.

Front

The relationship between time and interest in simple interest calculations is directly proportional; as time increases, interest increases.

Back

Longer durations yield more interest.

Front

Rearrange the formula to find Rate (R).

Back

Front

Rearrange the formula to find Time (T).

Back

Front

Convert interest rates to decimals.

Back

Example: 8\% becomes 0.08