Simple Interest

$261

p = $4500 r = 5.8% t = 1 year

$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

$72

You borrow $600 from your parents at 4% interest for 36 months. How much interest will you pay them?

$59.28

p = $780 r = 3.8% t = 2 years

$395

p = $9,875 r = 2% t = 2 years

$888

p = 18,500 r = 0.4% t = 12 years

$30

p= $250 r = 4% t = 3 years

$2,720

p=$6,800 t=16 years r=2.5%, what is the interest accrued?

$6,630

p=$8,500 r=6.5% t=144 months, what is the interest accrued?

Future value

principal + interest

$1,080

r=4.5% t=2 years p=$12,000, what is the interest accrued?

Principal or present value

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?

Rate

Amount charged on money loaned or invested expressed as a percent or decimal

Time

For simple interest this is the years (period) that money is on loan and earning interest

I = Prt

Formula used to calculate simple interest