Simple interest 2022

Front

What is simple interest?

Back

Simple interest is a method of calculating the interest charge on a loan or financial investment. It is calculated using the formula: Interest = Principal x Rate x Time.

Front

What is the formula for calculating simple interest?

Back

The formula for calculating simple interest is: I = P x r x 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 Maria borrowed $3,000 at a simple interest rate of 4% per year, how much interest will she pay after 4 years?

Back

Interest = Principal x Rate x Time = $3000 x 0.04 x 4 = $480.

Front

How much will Maria have to repay after 4 years?

Back

Total repayment = Principal + Interest = $3000 + $480 = $3480.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

If a pair of boots costs $80 and has a 25% discount, what is the sale price?

Back

Sale price = Original price - Discount = $80 - ($80 x 0.25) = $60.

Front

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

Back

Interest = Principal x Rate x Time = $350 x 0.025 x 3 = $26.25.

Front

If Violeta Orpilla invested $4000 at 5% interest for 12 years, how much interest will she earn?

Back

Interest = Principal x Rate x Time = $4000 x 0.05 x 12 = $2400.

Front

What will be the total amount in Violeta's account after 12 years?

Back

Total amount = Principal + Interest = $4000 + $2400 = $6400.

Front

What is the regular price of an item if it is sold for $104.40 after a 40% discount?

Back

Let the regular price be x. Then, x - 0.40x = $104.40, so x = $174.