simple Interest

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, and T is the time.

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 per year, and T is the time in years.

Front

If you borrow $1,000 at a rate of 5% for 3 years, what is the Simple Interest?

Back

The Simple Interest is $150.

Front

What does P stand for in the formula I = PRT?

Back

P stands for Principal, which is the initial amount of money borrowed or invested.

Front

What does R stand for in the formula I = PRT?

Back

R stands for Rate, which is the percentage of interest charged or earned per year.

Front

What does T stand for in the formula I = PRT?

Back

T stands for Time, which is the duration for which the money is borrowed or invested, measured in years.

Front

How do you calculate the total amount to be paid back on a loan?

Back

The total amount to be paid back is calculated by adding the Simple Interest to the Principal: Total Amount = P + I.

Front

If you have a principal of $500 and earn $25 in Simple Interest, what is the rate if the time is 2 years?

Back

The rate is 2.5%.

Front

What is the Simple Interest earned on a savings account of $2,000 at 4% interest per year after 5 years?

Back

The Simple Interest earned is $400.

Front

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

Back

The total amount is the sum of the principal and the Simple Interest earned.