Simple Interest
Rate
Interest that is expressed in the decimal form of percent.
I = P•r•t
The simple interest formula
$30
p= $250 r = 4% t = 3 years
$350
p=$1250 r=7% t=48 months
$210
p=$2000 r=3.5% t=3year
$157.50
p=$500 r=4.5% t=84 months
$2,720
p=$6,800 t=16 years r=2.5%, what is the interest accrued?
$1,080
r=4.5% t=2 years p=$12,000, what is the interest accrued?
$261
p = $4500 r = 5.8% t = 1 year
$59.28
p = $780 r = 3.8% t = 2 years
$395
p = $9,875 r = 2% t = 2 years
$888
p = 18,500 r = .4% t = 12 years
$6,630
p=$8,500 r=6.5% t=144 months, what is the interest accrued?
Final Balance
principal + interest
Principal
The initial amount of money deposited or borrowed.
$60
A deposit of $500 in an account earns 6% simple interest. How much interest will it earn in 2 years?
Time
For simple interest this is the years (period) that money is on loan and earning interest