Simple Interest Practice

Front

What is the formula for calculating simple interest?

Back

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

Front

In the simple interest formula I = P * r * t, what does 'P' represent?

Back

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

Front

In the simple interest formula I = P * r * t, what does 'r' represent?

Back

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

Front

In the simple interest formula I = P * r * t, what does 't' represent?

Back

t represents the time the money is invested or borrowed, typically in years.

Front

If Tina invested $2,000 at an 8% interest rate for 5 years, how much interest did she earn?

Back

$800

Front

If Emilio borrows $1,200 at an 8.5% interest rate for 2 years, what will be the total amount he has to pay back?

Back

$1,404

Front

You lend $240 to a friend and he pays you back $270. What is the interest rate charged?

Back

12.5%.

Front

What is the total amount paid back if the principal is $1,000, the interest is $100, and the time is 1 year?

Back

$1,100.

Front

How do you convert a percentage to a decimal for use in the simple interest formula?

Back

Divide the percentage by 100.

Front

What is the interest earned on a principal of $500 at a rate of 10% for 3 years?

Back

$150.