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