Simple interest

Front

What does the 'r' stand for in the simple interest equation?

Back

Rate (% as decimal)

Front

What does the 't' stand for in the simple interest equation?

Back

Time

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal × Rate × Time

Front

If you deposit $1,000 at a 5% interest rate for 3 years, how much interest will you earn?

Back

$150

Front

If you borrow $2,000 at an interest rate of 6% for 4 years, how much interest will you pay?

Back

$480

Front

What is the principal in a simple interest loan?

Back

The initial amount of money borrowed or invested.

Front

How does increasing the interest rate affect the total interest earned?

Back

Higher interest rates result in more interest earned.

Front

If you earn $30 in interest from a $600 deposit over 2 years, what is the interest rate?

Back

2.5% per year

Front

What happens to the interest earned if the time period is doubled, keeping the principal and rate constant?

Back

The interest earned will also double.

Front

If you have an interest rate of 4% and you want to earn $200 in interest, how much do you need to deposit for 5 years?

Back

$1,000