Simple Interest Concepts and Calculations

The video tutorial explains how to calculate simple interest using the formula I = P * R * T. It demonstrates how to solve for the interest rate by rearranging the formula to R = I / (P * T). An example is provided where a principal of $10,000 accrues $3,625 in interest over five years, resulting in a 7.25% interest rate. The video also covers converting a decimal to a percentage and concludes with additional examples.

What are the components needed to calculate simple interest?

• Rate, Time, Amount

• Principal, Time, Amount

• Principal, Rate, Amount

• Principal, Rate, Time

How can the formula for simple interest be rearranged to solve for the rate?

• Multiply interest by time

• Divide interest by principal

• Multiply interest by principal

• Divide interest by principal times time

In the example, what was the principal amount borrowed?

• $50,000

• $10,000

• $3,625

• $5,000

What was the total interest paid in the example problem?

• $7,250

• $50,000

• $10,000

• $3,625

How many years was the loan taken for in the example?

• 4 years

• 3 years

• 6 years

• 5 years

What is the decimal form of the interest rate calculated in the example?

• 7.25

• 0.00725

• 0.725

• 0.0725

How do you convert a decimal to a percentage?

• Divide by 100

• Multiply by 10

• Move the decimal two places to the right

• Move the decimal one place to the left

What was the final simple interest rate in the example?

• 9.25%

• 6.25%

• 7.25%

• 8.25%

What is the purpose of the additional examples shown at the end of the video?

• To confuse the viewer

• To provide more practice

• To introduce a new topic

• To summarize the video