Simple Interest Review 4

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: I = PRT, where I is the interest, P is the principal, R is the rate of interest per year, and T is the time in years.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is I = PRT, 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 I = 1200, P = 3750, and R = 4%, how many years did you leave the money in the bank?

Back

8 years.

Front

If I = 1500, R = 2.5%, and T = 6 years, how much Principal did you put in the bank?

Back

$10,000.

Front

What is the total amount in the account after 2 years if a principal of $2,500 is invested at an annual interest rate of 4%?

Back

$2,700.

Front

If P = 15000, R = 3%, and T = 4 years, how much Interest did you earn?

Back

$1,800.

Front

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

Back

Principal is the initial amount of money that is invested or loaned, before any interest is added.

Front

What does 'Rate' refer to in Simple Interest calculations?

Back

Rate refers to the percentage of interest charged or earned on the principal amount, typically expressed as an annual rate.

Front

What does 'Time' represent in the Simple Interest formula?

Back

Time represents the duration for which the money is invested or borrowed, usually measured in years.

Front

What is the relationship between Principal and Interest?

Back

The Principal and Interest are always money; the interest is the cost of borrowing the principal amount.