Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding.

Front

What is the formula for calculating Simple Interest?

Back

The formula for Simple Interest is I = PRT, where I is the interest, P is the principal, R is the rate of interest (in decimal), and T is the time (in years).

Front

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

Back

In the Simple Interest formula, 'P' represents the principal, which is the amount of money borrowed or deposited.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

Convert 7% to a decimal.

Back

0.07

Front

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

Back

In the Simple Interest formula, 'R' represents the rate of interest expressed as a decimal.

Front

If the principal is $5000 and the rate is 5% for 3 years, what is the Simple Interest?

Back

I = PRT = 5000 * 0.05 * 3 = $750.

Front

How do you convert a decimal to a percentage?

Back

To convert a decimal to a percentage, multiply the decimal by 100.

Front

Convert 0.25 to a percentage.

Back

25%.

Front

What is the time period in the Simple Interest formula?

Back

The time period (T) in the Simple Interest formula is the duration for which the money is borrowed or invested, measured in years.