Simple interest 2022

Front

What is Simple Interest?

Back

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

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: I = P x r x t, 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).

Front

If a principal amount of $500 is invested at a rate of 5% for 5 years, what is the interest earned?

Back

Interest = 500 x 0.05 x 5 = $125.

Front

How do you calculate the total amount after earning simple interest?

Back

Total Amount = Principal + Interest.

Front

What is the sale price of an item that costs $174 with a 40% discount?

Back

Sale Price = Regular Price - (Discount % x Regular Price) = 174 - (0.40 x 174) = $104.40.

Front

What is a discount?

Back

A discount is a reduction in the regular price of an item, often expressed as a percentage.

Front

If a pair of boots costs $94.99 and has a 25% discount, what is the sale price?

Back

Sale Price = 94.99 - (0.25 x 94.99) = $71.24.

Front

What is the principal in a simple interest problem?

Back

The principal is the initial amount of money that is invested or loaned.

Front

What does the term 'rate' refer to in simple interest?

Back

The rate refers to the percentage of the principal that is paid as interest over a specific period of time.

Front

If Rachel invests $2,700 at 7% simple interest for 2 years, what will be her total amount?

Back

Interest = 2700 x 0.07 x 2 = $378. Total Amount = Principal + Interest = 2700 + 378 = $3,078.