Simple Interest Math 7

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: Interest = Principal × Rate × Time.

Front

What is the formula for calculating Simple Interest?

Back

The formula for calculating Simple Interest is: Interest = Principal × Rate × Time.

Front

If you invest $1,000 at an interest rate of 5% for 3 years, how much interest will you earn?

Back

$150. (Interest = 1000 × 0.05 × 3 = $150)

Front

What is Principal in the context of Simple Interest?

Back

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

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 5% becomes 0.05.

Front

If the principal is $2,000, the interest rate is 4%, and the time is 5 years, what is the total interest earned?

Back

$400. (Interest = 2000 × 0.04 × 5 = $400)

Front

What will be the total amount after earning simple interest?

Back

Total Amount = Principal + Interest.

Front

If you borrow $3,000 at an interest rate of 6% for 4 years, how much will you repay in total?

Back

$3,720. (Interest = 3000 × 0.06 × 4 = $720; Total = 3000 + 720 = $3720)

Front

What is the relationship between time and interest earned?

Back

The longer the time period, the more interest will be earned, assuming the principal and interest rate remain constant.

Front

If you have an interest rate of 10% and you want to find the interest for 2 years on a principal of $500, what is the interest?

Back

$100. (Interest = 500 × 0.10 × 2 = $100)