Simple Interest

Front

What does the variable 't' represent in the simple interest formula I=Prt?

Back

Time, in years.

Front

If Tina invested $2,000 at an 8% interest rate for 5 years, how much interest did she earn?

Back

$800.

Front

Convert 4.3% to a decimal.

Back

.043.

Front

Convert 3.25% to a decimal.

Back

.0325.

Front

Convert 5% to a decimal.

Back

.05.

Front

What is the formula for calculating simple interest?

Back

I = Prt, where I is interest, P is principal, r is rate, and t is time.

Front

If the principal is $1,000 and the interest rate is 5% for 3 years, what is the interest earned?

Back

$150.

Front

What is the principal in the simple interest formula?

Back

The principal is the initial amount of money invested or borrowed.

Front

How do you calculate the total amount after interest is added?

Back

Total Amount = Principal + Interest.

Front

If you earn $200 in interest on a $1,000 investment at a 10% interest rate, how long was the money invested?

Back

2 years.