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: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: Interest = Principal × Rate × Time.

Front

If the Principal is $800, the Interest is $14, and the Time is 6 months, what is the Interest Rate?

Back

The Interest Rate is 3.5%.

Front

How much interest will John earn if he invests $1,000 at a simple interest rate of 3% per annum for 5 years?

Back

John will earn $150.

Front

If the Principal is $1,500 and the Interest earned is $120, what is the Interest Rate if the time is 2 years?

Back

The Interest Rate is 4%.

Front

What is the total interest earned on a starting money of $350 at an interest rate of 2.5% over 3 years?

Back

The total interest earned is $26.25.

Front

If you borrowed $43,800 and paid $4,204.80 in interest after 2 years, how do you find the Simple Interest Rate?

Back

The Simple Interest Rate is 4.8%.

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal is the initial amount of money that is invested or borrowed before interest is applied.

Front

What does 'Time' refer to in the Simple Interest formula?

Back

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

Front

What is the significance of the Interest Rate in Simple Interest calculations?

Back

The Interest Rate determines how much interest will be earned or paid on the principal amount over a specific period.