Formula
What is the formula for simple interest?
I=P x R x T
Find the simple interest paid
Principal $300, Rate 6%, Time 4 years
$72
What is simple interest?
The money added to the principal
What is the total amount owed on $2,000 if borrowed for 7 years at 6%?
$2840
What does the I stand for in the simple interest formula?
Interest
An initial deposit of $5000 is deposited into a savings account with a 7% rate. How much money is earned in interest at the end of 5 years?
$1750
In bank loans, what is the principal amount?
The original amount borrowed
Calculate the TOTAL:
Principal = $400
Rate = 7%
Time = 4 years
$512
What does the P stand for in the simple interest formula?
Principal
Gina deposits $150 into an account that offers 5% interest. What would she earn in interest after 6 years?
$90
A rate, number, or amount out of 100 is called a what?
Percentage
Debbie borrows $1,000,000 for real estate development and makes annual interest only payment for 3 years at a rate of 7.5% per year. What is her total payment over the 3 year period?
$1,022,5000
What does the R stand for in the simple interest formula and how is it expressed?
Interest rate expressed as a percent
How much interest is earned in five(5) years on $3,000 invested at an interest rate of 9% per year?
$1350
Any number in our base-ten number system and is represented using a point to separate the ones place from the tenths place.
A decimal.
Principal = $750
Rate = 9.5%
T = 8 years
TOTAL?
$1320
What does the T stand for in the simple interest formula and how is it expressed?
Time expressed in years
Principal = $350
Rate = 8%
Time = 2 years
Interest?
$56
A student borrowed $6000 from his father at 2% simple interest to buy a car. How much did he borrow in total after 3 years?
$6360