Simple Interest Practice

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It can be calculated using the formula: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is Principal, R is Rate (in decimal), and T is Time (in years).

Front

If the principal amount is $400, the interest rate is 7%, and the time period is 2 years, what is the simple interest?

Back

$56

Front

If the principal amount is $800, the interest rate is 6%, and the simple interest is $240, what is the time period?

Back

5 years

Front

If the simple interest is $80, the interest rate is 5%, and the time period is 4 years, what is the principal amount?

Back

$400

Front

If the principal amount is $1000, the simple interest is $200, and the time period is 4 years, what is the interest rate?

Back

5%

Front

What is the relationship between Principal, Rate, Time, and Simple Interest?

Back

Simple Interest is directly proportional to Principal and Time, and inversely proportional to Rate.

Front

How do you convert an interest rate from a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 7% becomes 0.07.

Front

What is the time period if the principal amount is $1200, the interest rate is 10%, and the simple interest is $600?

Back

5 years

Front

What happens to Simple Interest if the principal amount increases?

Back

If the principal amount increases, the Simple Interest will also increase, assuming the rate and time remain constant.