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?