Simple interest

Front

What does the variable 't' represent in the simple interest formula I=Prt?

Back

Time, in years.

Front

What is the formula for calculating simple interest?

Back

I = Prt, where I is interest, P is principal, r is rate, and t is time.

Front

If you deposit $500 at a 6.2% simple interest rate for 9 years, what is the total amount accumulated?

Back

$779.

Front

What is the principal in the context of simple interest?

Back

The amount of money borrowed or deposited.

Front

If Rich deposits $750 at a 3.5% simple interest rate for 7 years, how much will he have in his account?

Back

$933.75.

Front

What is the difference in interest paid between a 4-year loan at 3% and a 6-year loan at 5% on a $10,000 loan?

Back

$1800.

Front

How do you calculate the interest earned on a principal amount?

Back

Multiply the principal (P) by the rate (r) and the time (t): I = Prt.

Front

What does 'P' represent in the simple interest formula I=Prt?

Back

The principal amount of money borrowed or deposited.

Front

If the interest rate is 4% and the time is 5 years, how would you express this in the formula?

Back

I = P * 0.04 * 5.

Front

What is the total amount after earning simple interest?

Back

Total Amount = Principal + Interest.