Simple Interest

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: I = P * R * T.

Front

What does P stand for in the simple interest formula?

Back

P stands for Principal, which is the initial amount of money borrowed or invested.

Front

What does R stand for in the simple interest formula?

Back

R stands for the Rate of interest, expressed as a percentage.

Front

What does T stand for in the simple interest formula?

Back

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

Front

What is the formula for calculating Simple Interest?

Back

I = P * R * T.

Front

If the principal amount is $1000, the interest rate is 8%, and the time period is 2 years, what is the simple interest?

Back

$160.

Front

If the principal amount is $800, the interest rate is 4%, and the time period is 5 years, what is the total amount to be repaid?

Back

$800 + $160 = $960.

Front

If the principal amount is $3000, the interest rate is 5%, and the time period is 4 years, what is the total amount to be repaid?

Back

$3000 + $600 = $3600.

Front

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

Back

Total Amount = Principal + Simple Interest.

Front

What is the simple interest on a loan of $500 at a rate of 10% for 3 years?

Back

$150.