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Questions and Answers
What is the total interest for a loan with a principal of 100, an interest rate of 10%, and a loan period of 3 years?
Using the given formula, what is the total amount payable for the loan?
Which formula correctly calculates the total amount of money to be paid back at the end of the loan period?
If the principal amount were increased to 200, while keeping the interest rate and loan period the same, what would be the new total interest?
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What would be the effect on the total amount if the interest rate were decreased to 5% with the same principal and loan period?
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Study Notes
Simple Interest Calculation
- The total interest is calculated using the formula: Interest (I) = Principal (C) × Interest Rate (i) × Loan Period (n)
- The total amount payable is calculated using the formula: Total Amount (M) = Principal (C) + Interest (I)
- In this example, the principal is 100, the interest rate is 10%, and the loan period is 3 years.
- The total interest for the loan is 30.
- The total amount payable, including the principal and interest, is 130.
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Description
Test your understanding of simple interest calculation with this quiz! Learn how to apply the formulas for interest and total amount payable using a given principal, interest rate, and loan period. Perfect for students looking to strengthen their financial math skills.
