Simple Interest 1

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is given by the formula I = PRT, where I is the interest, P is the principal, R is the rate of interest per year, and T is the time in years.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is I = PRT.

Front

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

Back

$26.25

Front

Calculate the interest for a principal of $10,000 at a rate of 7% for 20 years.

Back

$14,000

Front

What is the principal amount in the formula I = PRT?

Back

The principal amount (P) is the initial sum of money borrowed or invested before interest.

Front

If Emilio borrows $1200 at 8% simple interest for 2 years, what will be the total amount to pay back?

Back

$1392

Front

How do you find the total amount to be paid back including interest?

Back

Total Amount = Principal + Interest.

Front

What is the interest earned on a loan of $4,000 at 6% for 5 years?

Back

$1,200

Front

What does the 'R' in the formula I = PRT represent?

Back

'R' represents the rate of interest per year, expressed as a decimal.

Front

If the interest earned is $120 on a principal of $1,000 at a rate of 6%, what is the time period?

Back

2 years.