Simple Interest/Commissions

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: Simple Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: SI = P × R × T, where SI is Simple Interest, P is Principal, R is Rate (as a decimal), and T is Time (in years).

Front

If you invest $1,000 at a 5% interest rate for 2 years, what is the Simple Interest earned?

Back

Simple Interest = 1000 × 0.05 × 2 = $100.

Front

What is a Commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of sales.

Front

How do you calculate Commission?

Back

Commission can be calculated using the formula: Commission = Sales × Commission Rate.

Front

If a salesperson sells $2,000 worth of products with a 10% commission rate, how much commission do they earn?

Back

Commission = 2000 × 0.10 = $200.

Front

What is the total amount in a savings account after earning Simple Interest?

Back

Total Amount = Principal + Simple Interest.

Front

If you deposit $1,500 at a 3% interest rate for 4 years, what will be the total amount in your account?

Back

Simple Interest = 1500 × 0.03 × 4 = $180. Total Amount = 1500 + 180 = $1,680.

Front

What is the Commission Rate?

Back

The Commission Rate is the percentage of sales that is paid as commission to the salesperson.

Front

How do you find the Commission Rate if you know the commission earned and total sales?

Back

Commission Rate = (Commission Earned / Total Sales) × 100.