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 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 $1000, the rate is 6%, and the time is 2 years, what is the interest?

Back

$120

Front

Jerry borrowed $4,000 for 5 years at a 6% simple interest rate. How much interest will he pay?

Back

$1,200

Front

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

Back

$1392

Front

What is the total amount to be paid back if the principal is $10000, the rate is 7%, and the time is 20 years?

Back

$14000

Front

Anna invested $2,500 at an annual rate of 5%. How long will it take until Anna earns $1,125 in interest?

Back

9 years

Front

What does 'Principal' mean in the context of Simple Interest?

Back

Principal is the initial amount of money that is borrowed or invested, before any interest is added.

Front

What does 'Rate' refer to in the Simple Interest formula?

Back

Rate refers to the percentage of the principal that is paid as interest over a specific period, usually expressed annually.

Front

What does 'Time' represent in the Simple Interest formula?

Back

Time represents the duration for which the money is borrowed or invested, typically measured in years.