12/11/24 Pract. 3-6 Simple Interest

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: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: Interest = Principal × Rate × Time.

Front

If the Principal is $800, the Interest Rate is 3.5%, and the Time is 6 months, what is the interest earned?

Back

The interest earned is $14.

Front

How do you convert time in months to years for interest calculations?

Back

To convert months to years, divide the number of months by 12. For example, 6 months = 6/12 = 0.5 years.

Front

If Emilio borrows $1200 at an 8% interest rate for 2 years, how much total will he pay back?

Back

Emilio will pay back a total of $1392.

Front

What is the total amount to be paid back if the Principal is $1200, the Interest Rate is 8%, and the Time is 2 years?

Back

Total Amount = Principal + Interest = $1200 + $192 = $1392.

Front

What is the interest earned on a loan of $43,800 at a 4.8% interest rate over 2 years?

Back

The interest earned is $4204.80.

Front

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

Back

Total Amount = Principal + Interest.

Front

If the starting money is $350, the interest rate is 2.5%, and the time is 3 years, how much interest is earned?

Back

The interest earned is $26.25.

Front

What is the relationship between Principal, Rate, and Time in Simple Interest?

Back

The interest earned is directly proportional to the Principal and Time, and directly proportional to the Rate.