SIMPLE INTEREST, Simple Interest
Rate
Interest that is expressed in the decimal form of percent.
$307.50
r=6% t=4 years i= $73.80, what is p?
$72
You borrow $600 from your parents at 4% interest for 36 months. How much interest will you pay them?
4 years
You deposit $5000 in an account that earns 5% simple interest. How long will it take you to earn $1,000 in interest?
$261
i = ? p = $4500 r = 5.8% t = 1 year
$59.28
i = ? p = $780 r = 3.8% t = 2 years
$395
i = ? p = $9,875 r = 2% t = 2 years
$888
i = ? p = 18,500 r = .4% t = 12 years
$30
i = ? p= $250 r = 4% t = 3 years
$350
i = ? p=$1250 r=7% t=48 months
$210
i = ? p=$2000 r=3.5% t=3year
$157.50
i = ? p=$500 r=4.5% t=84 months
$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?
Final Balance
principal + interest
$1,080
r=4.5% t=2 years p=$12,000, what is the interest accrued?
I = P•r•t
The simple interest formula
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