Simple Interest

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What is Simple Interest?

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Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula I = PRT, where I is the interest, P is the principal, R is the rate of interest, and T is the time in years.

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What is the formula for calculating Simple Interest?

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The formula for calculating Simple Interest is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest (in decimal), and T is the time (in years).

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If the principal is $500, the interest rate is 5%, and the time is 5 years, what is the interest earned?

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The interest earned is $125.

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

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'P' represents the Principal amount, which is the initial sum of money invested or loaned.

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

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'R' represents the Rate of interest, which is the percentage of the principal charged as interest for a specific period.

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

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'T' represents the Time, in years, for which the money is borrowed or invested.

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How do you convert a decimal to a percentage?

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To convert a decimal to a percentage, multiply the decimal by 100 and add the '%' symbol. For example, 0.37 becomes 37%.

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If you have a principal of $2,000 at an 8% interest rate for 5 years, how much interest will you earn?

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You will earn $800 in interest.

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What is the interest earned on $8,000 at 9% for 18 years?

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The interest earned is $12,960.

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How do you calculate Simple Interest?

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To calculate Simple Interest, use the formula I = PRT. Multiply the principal (P) by the rate (R) and the time (T).