Simple Interest

Front

What does the 'r' in the interest formula stand for?

Back

rate

Front

What does the 'I' in the interest formula stand for?

Back

Interest

Front

What is the formula for calculating Simple Interest?

Back

Simple Interest (SI) = Principal (P) × Rate (r) × Time (t) / 100

Front

If Maria borrowed $3,000 at a simple interest rate of 4% per year for 4 years, how much interest did she pay?

Back

$480

Front

If Julie borrowed $3,500 for 3 years at 7½% simple interest rate, how much interest is that?

Back

$787.50

Front

Starting money = $350. Interest rate = 2.5%. Time = 3 years. How much interest?

Back

$26.25

Front

What is the principal in a simple interest calculation?

Back

The principal is the initial amount of money borrowed or invested.

Front

How do you calculate the total amount to be repaid in a simple interest loan?

Back

Total Amount = Principal + Interest

Front

What is the time period in the simple interest formula?

Back

The time period is the duration for which the money is borrowed or invested, usually expressed in years.

Front

If the interest rate is 5% and the principal is $1,000, how much interest will be earned in 2 years?

Back

$100