Simple Interest Practice

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' represent in the Simple Interest formula?

Back

'P' represents the Principal amount, which is the initial sum of money borrowed or invested.

Front

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

Back

'R' represents the Rate of interest, expressed as a percentage.

Front

What does 'T' represent in the Simple Interest formula?

Back

'T' represents the Time period 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 $500, the interest rate is 5%, and the time period is 3 years, what is the simple interest?

Back

$75.

Front

If the simple interest is $80, the interest rate is 5%, and the time period is 4 years, what is the principal amount?

Back

$400.

Front

What is the time period if the principal amount is $1200, the interest rate is 10%, and the simple interest is $600?

Back

5 years.

Front

What is the interest rate if the principal amount is $600, the simple interest is $90, and the time period is 3 years?

Back

5%.

Front

How do you rearrange the Simple Interest formula to find the Principal amount?

Back

P = I / (R * T).