Podcast
Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App
Questions and Answers
In calculating simple interest, what does the 'amount' refer to?
In calculating simple interest, what does the 'amount' refer to?
- The initial sum of money
- The total money after interest is added (correct)
- The money borrowed
- The interest earned
What is the formula to calculate simple interest?
What is the formula to calculate simple interest?
- (P + R + T)/100
- P x R x (1 + T)
- P x (1 + R x T)
- P x R x T (correct)
If the principal is $1000, the rate is 5%, and the time is 2 years, what is the simple interest earned?
If the principal is $1000, the rate is 5%, and the time is 2 years, what is the simple interest earned?
- $50 (correct)
- $150
- $100
- $200
Flashcards are hidden until you start studying
Study Notes
Simple Interest
- In calculating simple interest, the 'amount' refers to the final amount of money accumulated after interest has been added to the principal.
Calculating Simple Interest
- The formula to calculate simple interest is: Simple Interest (SI) = Principal (P) x Rate (R) x Time (T)
Example Problem
- If the principal is $1000, the rate is 5% (or 0.05), and the time is 2 years:
- The simple interest earned can be calculated using the formula: SI = $1000 x 0.05 x 2 = $100
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
