Simple Interest

Front

What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount, or the original amount of money, that is lent or invested.

Front

What is the formula for calculating Simple Interest?

Back

The formula for Simple Interest is I = P * r * t, where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years.

Front

If you lend $240 and receive $270 back after 1 year, what is the interest earned?

Back

The interest earned is $30.

Front

How do you calculate the interest rate from the Simple Interest formula?

Back

To find the interest rate, rearrange the formula: r = I / (P * t).

Front

What does 't' represent in the Simple Interest formula I = P * r * t?

Back

In the formula, 't' represents the time in years.

Front

If Sydney earned $10.40 in interest at 0.8% for 1 year, how much did she deposit?

Back

She deposited $1300.

Front

What is the interest earned on $350 at a rate of 2.5% over 3 years?

Back

The interest earned is $26.25.

Front

If Store A sells a TV for $500 at 8% interest for 2 years, what is the total cost?

Back

The total cost is $500 + $80 = $580.

Front

If Store B sells the same TV for $550 at 5% interest for 2 years, what is the total cost?

Back

The total cost is $550 + $55 = $605.

Front

Which store offers the better deal for the TV, Store A or Store B?

Back

Store A offers the better deal.