SIMPLE INTEREST, Simple Interest
Time
For simple interest this is the years (period) that money is on loan and earning interest
Rate
Interest that is expressed in the decimal form of percent.
I = P•r•t
The simple interest formula
2
What is the simple interest when p = $780 r = 3.8% t = 24 months
$395
What is the simple interest when p = $9,875 r = 2% t = 2 years?
$18,500
What is the simple interest when p = 18,500 r = .4% t = 12 years ?
0.04
What is the simple interest when p= $250 r = 4% t = 3 years ?
$350
What is the simple interest when p=$1250 r=7% t=4?
0.058
What is the simple interest when p = $4500 r = 5.8% t = 1 year?
$210
What is the simple interest when p=$2000 r=3.5% t=36 months?
$157.50
What is the simple interst when p=$500 r=4.5% t=7?
$72
You borrow $600 from your parents at 4% interest for 3 years. How much interest will you pay them?
$1000
You deposit $5000 in an account that earns 5% simple interest. How much interest will it earn in 48 months?
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?