Simple Interest (I = Prt

Front

What is Simple Interest?

Back

Simple Interest (I) is calculated using the formula I = P * r * t, where P is the principal amount, r is the rate of interest per year, and t is the time in years.

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 interest.

Front

How do you calculate the interest earned on a principal of $800 at a rate of 3.5% for 6 months?

Back

Interest = 800 * 0.035 * 0.5 = $14.

Front

If you borrow $6500 at an 8% interest rate for 5 years, how much total will you pay back?

Back

Total Amount = Principal + Interest = 6500 + (6500 * 0.08 * 5) = $9100.

Front

What is the formula to find the total amount paid back on a loan with simple interest?

Back

Total Amount = Principal + Interest, where Interest = P * r * t.

Front

If you lend $240 and receive $270 back after one year, what is the interest rate?

Back

Interest = 270 - 240 = $30. Interest Rate = (30 / 240) * 100 = 12.5%.

Front

How much interest will Ann earn in one year if she invests $300 at a 4% interest rate?

Back

Interest = 300 * 0.04 * 1 = $12.

Front

What is the time period if Anna earns $1,125 in interest from a $2,500 investment at 5%?

Back

Time = Interest / (Principal * Rate) = 1125 / (2500 * 0.05) = 9 years.

Front

What is the interest earned on a principal of $1000 at a rate of 6% for 3 years?

Back

Interest = 1000 * 0.06 * 3 = $180.

Front

Define Rate in the context of Simple Interest.

Back

Rate is the percentage at which interest is calculated on the principal amount, usually expressed annually.