Calculating Simple and Compound Interest

Front

What is the formula for calculating Simple Interest?

Back

Simple Interest = Principal × Rate × Time

Tags

CCSS.7.RP.A.3

Front

How do you calculate the total balance in an account using Simple Interest?

Back

Total Balance = Simple Interest + Principal

Tags

CCSS.7.RP.A.3

Front

What is the formula for calculating Compound Interest?

Back

Compound Interest = Principal × (1 + Rate)^Time - Principal

Front

How do you calculate the total amount in an account with Compound Interest?

Back

Total Amount = Principal × (1 + Rate)^Time

Front

What does 'Principal' refer to in interest calculations?

Back

Principal is the initial amount of money deposited or borrowed.

Tags

CCSS.7.RP.A.3

Front

What does 'Rate' refer to in interest calculations?

Back

Rate is the percentage of interest charged or earned on the principal.

Tags

CCSS.7.RP.A.3

Front

What does 'Time' refer to in interest calculations?

Back

Time is the duration for which the money is invested or borrowed, usually in years.

Front

How do you find the interest paid on a loan?

Back

Interest = Total Amount - Principal

Tags

CCSS.7.RP.A.3

Front

What is the difference between Simple Interest and Compound Interest?

Back

Simple Interest is calculated only on the principal, while Compound Interest is calculated on the principal plus any interest that has been added.

Tags

CCSS.7.RP.A.3

Front

How do you calculate the interest earned on a simple interest investment after a certain number of years?

Back

Interest Earned = Principal × Rate × Time

Tags

CCSS.7.RP.A.3