Simple Interest

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What is Simple Interest?

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

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CCSS.7.RP.A.3

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What is the formula for calculating Simple Interest?

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The formula for calculating Simple Interest is I = P * r * t.

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CCSS.7.RP.A.3

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If you invest $500 at a 4% interest rate for 3 years, how much simple interest will you earn?

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You will earn $60 in simple interest.

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CCSS.7.RP.A.3

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How do you convert months into years when calculating simple interest?

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To convert months into years, divide the number of months by 12.

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CCSS.6.RP.A.3D

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If Jamie wants to earn $500 in simple interest with a deposit of $2,000 at 2.5% interest, how long will she need to invest her money?

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Jamie will need to invest her money for 10 years.

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CCSS.6.EE.B.7

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What is the principal amount if $120 is paid in simple interest for 6 months at a 12% interest rate?

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The principal amount is $2,000.

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CCSS.7.RP.A.3

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What does 'P' represent in the simple interest formula?

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'P' represents the principal amount, which is the initial amount of money invested or loaned.

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CCSS.8.EE.C.7B

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What does 'r' represent in the simple interest formula?

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

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CCSS.6.EE.B.7

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What does 't' represent in the simple interest formula?

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't' represents the time the money is invested or borrowed, measured in years.

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CCSS.6.EE.B.7

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If an account balance at the end of 7 years is $601.60 from an investment of $470, what is the interest rate?

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The interest rate is 4%.