Simple Interest CW

Front

What is the formula for calculating simple interest?

Back

I = P * r * t, where I is the interest, P is the principal amount, r is the rate of interest (as a decimal), and t is the time in years.

Front

If you invest $2000 at a simple interest rate of 5% for 3 years, how much interest will you earn?

Back

$300. (I = 2000 * 0.05 * 3 = 300)

Front

What does the variable 'P' represent in the simple interest formula?

Back

P represents the principal amount, which is the initial amount of money invested or loaned.

Front

How do you convert a percentage to a decimal?

Back

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

Front

What is the simple interest earned on $1000 at a rate of 4% over 5 years?

Back

$200. (I = 1000 * 0.04 * 5 = 200)

Front

What does the variable 'r' represent in the simple interest formula?

Back

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

Front

If you have $1500 in a bank account earning 6% simple interest, how much interest will you earn in 10 years?

Back

$900. (I = 1500 * 0.06 * 10 = 900)

Front

What does the variable 't' represent in the simple interest formula?

Back

t represents the time the money is invested or borrowed, measured in years.

Front

How much interest will you earn on $2500 at a simple interest rate of 3% over 4 years?

Back

$300. (I = 2500 * 0.03 * 4 = 300)

Front

What is the total amount (principal + interest) after 5 years on an investment of $1000 at 5% simple interest?

Back

$1250. (Total = Principal + Interest = 1000 + 250 = 1250)