Know Your Formulas
What is the formula for simple interest?
\(I=\frac{PRT}{100}\)
Find the interest on $1,000 at 5% for 1 year.
$50
What is simple interest?
What is the extra money earned or paid on the original amount of money borrowed or invested?
Interest is $100, rate is 5%, and time is 1 year. Find the principal.
$2,000
True or False: Simple interest is calculated on the original principal.
What is True?
What is the formula for finding rate?
\(R=\frac{I\times100}{PT}\)
Find the interest on $2,000 at 5% for 2 years.
$200
What is principal?
The original amount of money borrowed or invested.
Interest is $400, principal is $4,000, and time is 2 years. Find the rate.
5%
What happens to simple interest when the time increases?
What is increases?
What is the formula for finding the principal?
\(P=\frac{I\times100}{RT}\)
Find the interest on $3,000 at 4% for 3 years.
$360
What is the interest rate?
The percentage charged or earned on money.
Interest is $600, principal is $2,000, and rate is 10%. Find the time.
3 years
True or False: The principal is the interest earned.
What is False ?
What is the formula for finding time?
\(T=\frac{I\times100}{PR}\)
Find the interest on $5,000 at 6% for 4 years.
$1,200
What does time represent in simple interest?
The length of time money is borrowed or invested.
Interest is $900, rate is 6%, and time is 3 years. Find the principal.
$5,000
If you borrow $2,000 and repay $2,300, how much interest did you pay?
What is $300?
What is the formula for calculating the accrued amount?
\(A=P+I\)
Find the interest on $8,000 at 5% for 3 years.
$1,200
Name the four letters used in the simple interest formula and what they represent
I = Interest, P = Principal, R = Rate, T = Time.
Interest is $1,200, principal is $4,000, and time is 5 years. Find the rate.
6%
A person invests $6,000 at 5% simple interest for 4 years. How much interest will they earn?
What is $1,200?