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

I = PRT, where I is the interest, P is the principal, R is the rate of interest (in decimal), and T is the time (in years).

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

If the interest rate is 5%, what is it in decimal form?

Back

0.05

Front

What does 'P' represent in the Simple Interest formula I = PRT?

Back

'P' represents the principal amount, which is the initial sum of money borrowed or invested.

Front

What does 'R' represent in the Simple Interest formula I = PRT?

Back

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

Front

What does 'T' represent in the Simple Interest formula I = PRT?

Back

'T' represents the time the money is borrowed or invested, measured in years.

Front

Convert 24 months to years.

Back

2 Years

Front

If the principal is $1000, the interest rate is 4%, and the time is 3 years, what is the interest earned?

Back

$120

Front

What is the principal if the interest earned is $150, the rate is 5%, and the time is 2 years?

Back

$1500