3 Questions
In calculating simple interest, what does the 'amount' refer to?
The total money after interest is added
What is the formula to calculate simple interest?
P x R x T
If the principal is $1000, the rate is 5%, and the time is 2 years, what is the simple interest earned?
$50
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
Test your knowledge of comparing quantities with this quiz focusing on amount, principal, and interest-based questions. Challenge yourself with a variety of mathematical scenarios and enhance your understanding of these key concepts.
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