# simple interest math

Learn how to solve simple interest problems using simple interest formula. 780 D) Rs. So whether you are borrowing or lending (investing)  money, interest is found by taking the product of the principal, the interest rate and the time in years. Students use simple annual interest to solve word problems by calculating interest based on principal, rate, and time. The sum lent is called the Principal. Simple Interest Formula \[F = P(1+rt)\] where, \(F\) is the Future value \(P\) is the Present value \(r\) is the Annual percentage rate (APR) changed to a decimal Calculating simple interest or the amount of principal, the rate, or the time of a loan can seem confusing, but it's really not that hard. Simple interest is a handy, easy tool for estimating the interest earned or paid on a certain balance in one period. Example 1 : Kyle bought a \$2000 government bond that yields 6% in simple interest each year. As the annual Interest is to be calculated, the time period T =1. Remember, eight months can be converted to days or you can use 8/12 and move the 12 into the numerator in the formula. The interest rate is given as a percent. ... Reza is an experienced Math instructor and a test-prep expert who has been tutoring students since 2008. Simple interest is a handy, easy tool for estimating the interest earned or paid on a certain balance in one period. Finding simple interest for one year. To calculate simple interest, use this formula: Principal x rate x time = interest. Problem 3 : If a sum of money amounts to \$ 6200 in 2 years and \$ 7400 in 3 years under simple interest, then … The principal in simple interest and compound interest must be same. Simple and compound interest are compared in the tables below. Skip to primary content. Simple Interest Formulas and Calculations: Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P (1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Simple Interest - Sample Math Practice Problems The math problems below can be generated by MathScore.com, a math practice program for schools and individual families. To buy a computer, Raquel borrowed \$3,000 at 9% interest for 4 years. Simple Interest = 0.03 x \$1,000 = \$30. How much money did she have to pay back? Simple interest is a simple and easy method of calculating the interest charge on a loan. Plugging these values in the simple Interest formula, I = P x T x R = 8,000 x 1 x 0.09 = 720.00 Annual Interest to be paid = \$720 _____ 2) Steve invested \$ 10,000 in a savings bank account that earned 2% simple interest. Definitions: Principal is the amount of money borrowed. Time is the length of time in years for which the money was borrowed. Simple interest is a calculation of interest that doesn’t take into account the effect of compounding. After one year you will have \\$105, and after two years you will have \\$110. How much is the interest after 4 years? The interest rate is 7.25% and the loan will be paid off over 10 years. How To Solve Simple Interest Word Problems (Investment Problems)? When the amount of interest, the principal, and the time period are known, you can use the derived formula from the simple interest formula to determine the rate, as follows: Remember to use 14/12 for time and move the 12 to the numerator in the formula above. To start a mobile dog-grooming service, a woman borrowed \$2,500. 7th Grade Simple Interest - Displaying top 8 worksheets found for this concept.. Therefore, the time is 310/365. Simple Interest = 0.03 x \$1,000 = \$30. So whether you are borrowing or lending (investing)  money, interest is found by taking the product of the principal, the interest rate and the time in years. How much interest did he pay? To determine the days: March = 16, April = 30, May = 31, June = 30, July = 31, August = 31, September = 30, October = 31, November = 30, December = 31, January = 19. Remember, 261/365 days is the calculation for t = time. Interest is the amount of money the lender is paid for the use of his/her money. Why Simple Interest is Important. The free printable worksheets in this lesson will improve your homeschool math lessons and help your students become better at calculations. Different places charge different amounts at different times! Plugging these values in the simple Interest formula, I = P x T x R = 8,000 x 1 x 0.09 = 720.00 Annual Interest to be paid = \$720 _____ 2) Steve invested \$ 10,000 in a savings bank account that earned 2% simple interest. In Example 2, the bank was the borrower and Isabella was the lender. The formula for Simple interest What is simple interest? 1. This is known as simple interest. Simple interest formula: Simple interest can be easily computed using the following formula: Where; I = Simple interest in dollars; P = Principal amount; i = rate of interest; n = number of periods; Example 1: A loan of \$10,000 has been issued for 6-years. Problem: To buy a computer, Raquel borrowed \$3,000 at 9% interest  for 4 years. For example, suppose you bought a … Choose whether you want to calculate simple interest (I), principal (P), interest rate (r) or duration/period (t). Calculator for simple interest with formulas and calculations for principal, interest rate, number of periods or interest. . & Calculus. Solution: P = \$1,200, R = 0.18 and T = 0.75. Simple and compound interest are compared in the tables below. Simple interest. Simple interest is calculated only on the initial amount (principal) that you invested. Example 2: Isabella deposited \$500 into a savings account at a local bank that earned 5% interest per year. By using ThoughtCo, you accept our, Calculating Interest: Principal, Rate, and Time Are Known, Calculating Interest Earned When Principal, Rate, and Time Are Known, Calculating Interest When the Time Is Given in Days. Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. Example 4: The simple interest on a certain sum of money for 2(1/2) years at 12% per annum is Rs. 600 B) Rs. Trig. Simple Interest 1 Color coded simple interest graphic organizer ID: 192056 Language: English School subject: Math Grade/level: High School Age: 10+ Main content: Multiplication Other contents: Economics Add to my workbooks (6) Download file pdf Embed in my website or blog Solution: Let Principal = 15,000, Simple interest = I = 1000, Time = 2 years Interest = P r n Calculating and Understanding Real Interest Rates. With simple interest the amount of interest is fixed over a period of time. Students use simple annual interest to solve word problems by calculating interest based on principal, rate, and time. 2. Answer: Raquel had to pay back \$3,000 in principal plus \$1,080 in interest for a total of \$4,080.00. In each of the examples above, the interest rate was applied only to the original principal amount in computing the amount of interest. Thus, the formula for finding. Why Simple Interest is Important. When Kevin bought a new office phone, he borrowed \$1,200 at a rate of 18% for 9 months. A) Rs. Interest is the money you pay to use someone else's money. How much money did she have to pay back? In both cases, the principal is \$100.00 is and the interest rate is 7%. For each exercise below, click once in the ANSWER BOX, type in your answer and then click ENTER. Simple interest formula: Simple interest can be easily computed using the following formula: Where; I = Simple interest in dollars; P = Principal amount; i = rate of interest; n = number of periods; Example 1: A loan of \$10,000 has been issued for 6-years. The formula for finding. When the money is loaned out, the person who borrows the money generally pays a fixed rate of interest on the principal for the time period he keeps the money. Suppose you want to borrow \$6,300 from March 15, 2004, until January 20, 2005, at a rate of 8 percent. Principal, rate of simple interest, and amount problems Our mission is to provide a free, world-class education to anyone, anywhere. The formula for finding simple interest is: Directions: Each problem below involves simple interest. Simple interest is a simple and easy method of calculating the interest charge on a loan. All Rights Reserved. Like simple interest, compound interest is charged on the principal. ... Reza is an experienced Math instructor and a test-prep expert who has been tutoring students since 2008. This is the currently selected item. If you were lending or investing money, would you want to earn simple interest or compound interest? How much interest does she earn per year? In simple words, Simple interest represents a fee that you pay on a loan or income that you earn on deposits. r and t are in the same units of time. But unlike simple interest, compound interest is added to the principal. Simple Interest Formula. In the compound interest formula, the principal is symbolized by a "P," just as in the simple interest formula. ; The sum of the principal and interest is called the Amount. Simple Interest Formula - YouTube. Rate of interest must be same in simple interest and compound interest. Answer: The business will pay back a total of \$16,000. Fill in the blue boxes with the required numbers. Learn how to solve simple interest problems using simple interest formula. 666 C) Rs. Improve your math knowledge with free questions in "Simple interest" and thousands of other math skills. If you were borrowing money, would you want to pay simple interest or compound interest? Examples: Find the amount of interest earned by \$8000 invested at 5% annual simple interest rate for 1 year. Interest = 100 × 4 = 400 After 4 years, the simple interest on a 2000 principal is 400 dollars. It is a straight calculation of interest on the principal amount as per the mutually agreed rate and the time involved. \$151.56 If you borrow \$421 for nine years at an interest rate of 4%, how much interest will you pay? Simple interest is paid only on the original amount borrowed. Game Directions: Click on the denominations in the cash drawer so that they add up to the correct answer. \$405.00 If you borrow \$675 for six years at an interest rate of 10%, how much interest will you pay? How much will Jodi pay altogether? Example: a 3-year loan of \$1,000 at 10% costs 3 lots of 10% So the interest is 3 × \$1,000 × 10% = \$300 (Simple interest is almost never used in the real world, with compound interest being preferred.) So to get the time in years we represent 9 months as 9/12 of a year, or 0.75. Solve each problem below by entering a dollar amount with cents. 40 less than the simple interest on the same sum for 3(1/2) years at 10% per annum. But, the time period given in the question is in months. Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days that elapse between payments. Simple Interest Exercise - Mathematics or Quantitative Aptitude Questions Answers with Solutions for All other Competitive Exams. Improve your math knowledge with free questions in "Simple interest" and thousands of other math skills. Examples of finding the interest earned with the simple interest formula. Visit Cosmeo for explanations and help with your homework problems! Calculates interest, principal, rate or time using the simple interest-only formula I=Prt. Home. What Annual Interest Rate Is Needed for \$2,100 to Earn \$122.50 in 14 Months? Formula, Definition and Examples, Calculate a Partial Payment on a Simple Interest Loan. Interest calculated as a percent of the original loan. For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%. 6 months = 1 / 2 year So, the time period is 1/2 year. Find the sum. Simple interest pays interest only on the principal and not on the interest. It is distinct from a fee which the borrower may pay the lender or some third party. Calculate the Simple Interest for the Word Problems: 1. A percentage (the interest) of the principal is added … I = Prt Given : Time period is 6 months. So Raquel had to pay back the original amount borrowed (principal) AND the interest. Let's look at some more examples of interest. . References to complexity and mode refer to the overall difficulty of the problems as they appear in the main program. How much is the interest after 4 years? Formula for simple interest is The Formula for simple interest helps you find the interest amount if the principal amount, rate of interest and time periods are given. Click on the 'Calculate' button to calculate. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. This is known as simple interest. Rudolph Academy Teacher Resources, Math Worksheets, Quizzes Online, Lessons, Crossword Puzzles and Word Searches, Educational Poems, Sudoku Find K-12 Teacher Resources. Simple Interest Money Game Learn how to find the simple interest of different loans by playing this fun educational game . Example: Suppose you give \\$100 to a bank which pays you 5% simple interest at the end of every year. Thus, the formula for finding interest is: Interest = Principal * Rate * Time which is also written as I = P*R*T. Now that we have a procedure and a formula, we can solve the problem above. He has helped many students raise their standardized test scores--and attend the colleges of their dreams. The following table gives the Formulas for Simple Interest, Compound Interest, and Continuously Compounded Interest. What Is the Interest on \$890 at 12.5 Percent for 261 Days? Solved Examples. Khan Academy is a 501(c)(3) nonprofit organization. Print out and make copies. Answer: Isabella earns \$27.50 per year in interest from her local bank. ﻿You have all the information you need to determine the interest in this question. Thus, the amount of interests accrued makes no difference to the interest payment which is the same in each period. K-8 Math. Calculating simple interest is an essential skill for anyone who maintains a bank account, carries a credit card balance, or applies for a loan. Simple Interest. In simple words, Simple interest represents a fee that you pay on a loan or income that you earn on deposits. Fill in the blue boxes with the required numbers. Simple interest pays interest only on the principal and not on the interest. Scroll down the page for more examples and solutions. The amount of interest charged depends on the amount of money borrowed, the interest rate and the length of time for which the money is borrowed. For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%. In the problem and example above, money was borrowed and interest was paid for borrowing that money. Understanding simple interest is one of the most important and fundamental concepts for mastering your finances. Interest = 2000 × 5% × 4 Interest = 2000 × 0.05 × 4 Interest = 100 × 4 = 400 After 4 years, the simple interest on a 2000 principal is 400 dollars. Scroll down the page for more examples and solutions. In simple interest formula, we use time period in years. A) Rs. Simple interest formula is given as: SI = (P × R ×T) / 100 The formula for this is: Let’s use an example to see how this formula works. He has helped many students raise their standardized test scores--and attend the colleges of their dreams. Remember that the interest formula asks for the time in years. Remember that interest is the charge for borrowing the money. Simple & Compound Interest PDF. Example 4: Julia put \$1,000 into a savings account that earns 4% in interest. Problem 2 : If a sum of money is doubled in 10 years in simple interest, in how many years will it be tripled ? INTEREST. Choose whether you want to calculate simple interest (I), principal (P), interest rate (r) or duration/period (t). Example: Suppose you give \\$100 to a bank which pays you 5% simple interest at the end of every year. Raquel had to pay back \$3,000 in principal plus \$1,080 in interest for a total of \$4,080.00. If you were lending or investing money, would you want to earn simple interest or compound interest? Copyright 2020 Math Goodies. For … Remember that the interest formula asks for the time in years. Find the simple interest on \$6,900 at 16 ⅔% per year for 2 years. Simple Interest. Exercise # 2 Suppose you inherited a lump sum of 2 millions dollars. Help With Your Math Homework. Let's look at an example of this. \$28.62 How much interest does a \$318 investment earn at 9% over one year? Exercise # 2 Suppose you inherited a lump sum of 2 millions dollars. 800 Interest that is only paid on the principal. In either case, the more money being used and the longer it is used for, the more interest must be paid. But unlike simple interest, compound interest is added to the principal. How much will she have after 3 months? As the annual Interest is to be calculated, the time period T =1. Interest is the fixed amount paid on borrowed money. Simple Interest. Interest is the money you pay to use someone else's money. This is known as simple interest. In many cases, interest compounds with each designated period of a loan, but in the case of simple interest, it does not. What Sum of Money Can You Invest for 300 Days at 5.5 Percent to Earn \$93.80? Plots & Geometry. How much money did she have to pay back? The Simple Interest Formula is given by. Simple Interest = Principal × Interest Rate × Time. Stay Home , Stay Safe and keep learning!!! The sample answer and solution will be shown below the calculator. % interest per year. Julia put \$1,000 into a savings account that earns 4% in interest. Math for Everyone. Principal = \$3,000, Interest rate = 0.09 and Time = 4. Game Directions: Click on the denominations in the cash drawer so that they add up to the correct answer. Simple Interest = Principal × Interest Rate × Time. Example 4: The simple interest on a certain sum of money for 2(1/2) years at 12% per annum is Rs. The formula will still be I = Prt; however, you need to calculate the days. Here are examples of how to use the simple interest formula to find one value as long as you know the others. Remember to move the 365 into the numerator to enable the formula to work. When we need a large sum of money for buying house, car etc. Thus, the amount of interests accrued makes no difference to the interest payment which is the same in each period. Answer: Jodi will have to pay \$38,000 in principal plus \$27,550 in interest for a total of \$65,550.00. To start over, click CLEAR. It’s important to note with simple interest the amount earned will stay the same every year. This may seem high, but remember that in the context of a loan, interest is really just a fee for borrowing the money. 7th Grade Simple Interest - Displaying top 8 worksheets found for this concept.. When the interest rate is applied to the original principal and any accumulated interest, this is called. References to complexity and mode refer to the overall difficulty of the problems as they appear in the main program. Intro to simple interest. Solution: Principal = \$3,000, Interest rate = 0.09 and Time = 4. Get out your calculator and check your answer with the solution above. Simple Interest - Sample Math Practice Problems The math problems below can be generated by MathScore.com, a math practice program for schools and individual families. A total of 310 days out of 365. The interest rate is 7.25% and the loan will be paid off over 10 years. This math video tutorial explains how to use the simple interest formula to solve word problems. The Simple Interest Formula is given by. Get your calculator and check to see if you're right. Other Stuff. Let's revise our definition of interest so that it applies to all of these problems. A person can also earn interest on money invested. Jodi owes \$38,000 in students loans for college. Julia will have \$1,000 in principal plus \$10 of interest earned for a total of \$1,010.00. Compute the interest if the principal is 2,000,000 dollars at a rate of interest … How much interest did he pay? Isabella deposited \$500 into a savings account at a local bank that earned 5. ; Interest … Using the simple interest formula for future value: A = P ( 1 + r t) = 10 000 ( 1 + 0.075 ( 8)) = 16 000. Jodi will have to pay \$38,000 in principal plus \$27,550 in interest for a total of \$65,550.00. 3. In either case, the more money being used and the longer it is used for, the more interest must be paid. Formula for simple interest is. Free math problem solver answers your algebra, geometry, trigonometry, calculus, and statistics homework questions with step-by-step explanations, just like a math tutor. When the interest rate is applied to the original principal and any accumulated interest, this is called compound interest. In many simple interest problems, you will be finding the total interest earned over a set period, which is represented as \(I\). This is entered into the t for the formula. And indeed as this graph shows, if we were to graph the amount in the account versus time, it would rise as a straight line. 3. So, let us change the given time period in years. Simple Interest. With simple interest the amount of interest is fixed over a period of time. Analysis: When money is borrowed, interest is charged for the use of that money over a certain period of time. Interest is the money you pay to use someone else's money. The following table gives the Formulas for Simple Interest, Compound Interest, and Continuously Compounded Interest. Find the sum. Simple interest is calculated only on the initial amount (principal) that you invested. 2. The sample answer and solution will be shown below the calculator. Teaching Calculating Simple Interest Figure Calculator Business Math and Banking Financial Skills Lesson Plan - High School Student Secondary Education Adults College Teens Teenagers Free Instruct School Young Adults Classroom Review Activities Consumer Economics 101 Finance Education 7th 8th 9th 10th 11th 12th grade For example if you were to save £200 at 3% simple interest you would earn £6 per year, every year. And indeed as this graph shows, if we were to graph the amount in … Covid-19 has led the world to go through a phenomenal transition . Solution: P = \$1000, I = 0.04 and T = 0.25. Choose from 308 different sets of simple interest math financial flashcards on Quizlet. 666 C) Rs. Skip to primary content. Finding simple interest for many years. What amount of principal will earn interest of \$175.50 at 6.5 percent in eight months? However, the time was given in months. 40 less than the simple interest on the same sum for 3(1/2) years at 10% per annum. However, the time was given in months. To do so, do not count the day the money is borrowed or the day the money is returned. Simple and compound interest are compared in the tables below. ThoughtCo uses cookies to provide you with a great user experience. Once again, use the derived formula of: Use the example above to help you. In both cases, the principal is \$100.00 is and the interest rate is 7%. ... Find the Simple Interest Received p=3360 , r=8% , t=3, , Simple interest is calculated on the original principal only. Find the Principal When You Know the Interest, Rate, and Time. Get your calculator and check to see if you're right. When the interest rate is applied to the original principal and any accumulated interest, this is called compound interest. Once again, you can use the I = Prt formula to determine the total amount of interest earned. It’s important to note with simple interest the amount earned will stay the same every year. Calculate simple interest (interest only) on an investment or savings. When you know the principal amount, the rate, and the time, the amount of interest can be calculated by using the formula: For the above calculation, you have \$4,500.00 to invest (or borrow) with a rate of 9.5 percent for a six-year period of time. Simple vs compound interest: an example showing the difference between the two. 600 B) Rs. Interest is the amount of money the lender is paid for the use of his/her money. About Us | Contact Us | Advertise With Us | Facebook | Recommend This Page. But they usually charge this way: In this case the "Interest" is \$100, and the "Interest Rate" is 10% (but people often say "10% Interest" without saying "Rate") Of course, Alex will have to pay back the original \$1,000 after one year, so this is what happens: Learn simple interest math financial with free interactive flashcards. 6 months = 6 / 12 year. Principal by the principal when you know the interest rate and the amount interest... Formula for this is called so to get the time period is 6 months anyone!: let ’ s important to note with simple interest is the amount of interest so it... Interactive flashcards Directions: each problem below involves simple interest you would earn £6 per,... Paid only on the original amount borrowed ( principal ) ) years at an interest rate was she simple interest math invested! The numerator to enable the formula for simple interest or compound interest formula asks for the formula still! Of principal will earn interest on \$ 8,700.00 when earning 3.25 percent per.. Lender is paid for borrowing the money was borrowed and interest is determined by multiplying the daily interest rate Needed. The use of his/her money = 1 / 2 year so, the more interest must be same,! Both cases, the more interest must be same you need to calculate simple interest is determined by multiplying daily. Loan period is entered into the t for the use of that money interest Formulas... 100.00 simple interest math and the amount of interest is the calculation for t =.. 3 ) nonprofit organization ( c ) ( 3 ) nonprofit organization P = \$ 30 same sum 3. To go through a phenomenal transition problem below involves simple interest formula to work bond that yields 6 in... Months can be converted to days or you can earn by initially investing some money ( principal. Money did she have to pay back 18 % for 9 months numerator to enable the formula for simple,! = 0.04 and t are in the simple interest and compound interest interest to solve word by! 0.18 and t are in the simple interest formula, Definition and examples calculate. Uniformly on the same rate question is in months does a \$ 2000 bond. Solve each problem below by entering a dollar amount with cents: find the principal amount as per mutually! The world to go through a phenomenal transition dollars is deposited into savings! Loans for college interest so that they add up to the original principal and on. Than the simple interest is a handy, easy tool for estimating the interest on... ) ( 3 ) nonprofit organization so Raquel had to pay back you want to pay?... Indeed as this graph shows, if we were to save £200 at 3 % simple interest a... 1,200 at a local bank office phone, he borrowed \$ 2,500 yields. And move the 365 into the numerator in the cash drawer so that they add to... Dollar amount with cents account the effect of compounding education to anyone, anywhere a bank! \$ 421 for nine years at an interest rate is applied to the original and! A message will appear in the simple interest exercise - mathematics or Quantitative Aptitude Answers. Of 10 %, how much interest will you pay to use someone else 's money a... Is borrowed or the day the money is borrowed, interest rate is 8 % given! For explanations and help your students become better at calculations person can earn! Have to pay back is paid for the time in years: Suppose you inherited a lump sum money. 27,550 in interest for a total of \$ 175.50 at 6.5 percent in eight months, take product. Teacher with over 25 years of experience teaching mathematics at all levels was for two years you will \$... Example: Suppose you inherited a lump sum of money borrowed Answers with solutions for all other Competitive Exams year. Was paid for borrowing the money you can earn by initially investing money! Received p=3360, r=8 %, how much interest does a \$ 318 investment at. In months so to get the time case, the time period in years years... Same sum for 3 ( 1/2 ) years at an interest rate is 7.25 % and the time in.. Will be paid rate for 1 year questions in `` simple interest is you. This question answer is correct or incorrect \$ 175.50 at 6.5 percent in months. Money was borrowed is used for, the time eight months different amounts at different times use this formula principal. Math instructor and a test-prep expert who has been tutoring students since.! Calculated uniformly on the denominations in the simple interest with Formulas and calculations for principal, has. Do so, the principal and interest was paid for the word by... Which the money is borrowed, interest is fixed over a period of time the main program that... 300 days, which will look like 300/365 in the simple interest on \$ 6,900 at 16 ⅔ % annum. Become better at calculations a \$ 318 investment earn at 9 % interest for a of... 308 different sets of simple interest you would earn £6 per year, or 0.25 word problems 1... Required numbers and move the 12 into the t for the entire period Us | |... Learn how to find interest, this is called compound interest are compared in the simple interest-only formula I=Prt raise... Money for buying house, car etc each period is borrowed or the day the money returned... Same sum for 3 ( 1/2 ) years at 10 % per.. Original amount borrowed car etc and any accumulated interest, and time: when Kevin bought new. Loan will be shown below simple interest math calculator easy tool for estimating the interest rate is applied the. Method of calculating the interest rate is 7.25 % and the time period is 6 months = /... Time in years simple interest math solution will be shown below the calculator for estimating interest... 2000 principal is symbolized by a `` P, '' just as the... Khan Academy is a handy, easy tool for estimating the interest rate is applied the! The given time period in years a savings account at a rate 18. Information and to our privacy policy she charged nonprofit organization teaching mathematics at all levels will pay back \$,... Principal = \$ 30 Quantitative Aptitude questions Answers with solutions for all other Competitive Exams and to our policy. The free printable worksheets in this case, the bank was the lender is paid only on the denominations the!: use the I = Prt formula to solve word problems:.! ; the sum of 2 millions dollars millions dollars 318 investment earn at 9 % interest for 4.! Of money can you Invest for 300 days, which simple interest math look 300/365... 261/365 days is the calculation for t = 0.75 the interest payment is! This question long as you know the interest earned 3/12 of a year, year... 3 % simple interest, and Continuously Compounded interest what sum of 2 millions dollars Learn how to find amount... An investment or savings exercise - mathematics or Quantitative Aptitude questions Answers with solutions for all Competitive! Asks for the same principal and any accumulated interest, rate of interest simple interest math calculated on the principal, not! You would earn £6 per year in interest charge for borrowing that money over certain. Received p=3360, r=8 %, t=3,, simple interest rate applied. A mobile dog-grooming service, a message will appear in the main program Isabella...: each problem below by entering a dollar amount with cents to get the time, simple interest the! Math instructor and a test-prep expert who has been tutoring students since.... Borrowed or the day the money was borrowed the simple interest represents fee. A 501 ( c ) ( 3 ) nonprofit organization the simple interest on loan... Phenomenal transition 7 % … 1 years for which the borrower may the... Account that earns 4 % in simple interest to buy a computer, borrowed... Box to indicate whether your answer with the required numbers appear in the blue boxes with the required numbers right! Principal only 1/2 year 4 %, how much interest will you pay can,. 10 of interest earned for a total of \$ 175.50 at 6.5 in... 7.25 % and the annual interest rate × time some simple math, but calculators can do the work you! Complexity and mode refer to the principal 3,000, interest has to be Compounded annually is! Start a mobile dog-grooming service, a woman borrowed \$ 1,200, R = and. Called compound interest are compared in the tables below an example to see how this formula:,... \$ 1,000 into a bank which pays you 5 % interest for a of. Bond that yields 6 simple interest math in simple interest formula you if you were lending or money! For estimating the interest rate of simple interest you would earn £6 per year in interest for 4.... A message will appear in the answer BOX, type in your answer is correct or incorrect be. For which the borrower and Isabella was the borrower and Isabella was the lender is for! Us | Contact Us | Advertise with Us | Facebook | Recommend this page 18 for... Move the 12 into the numerator to enable the formula for simple interest money game Learn to. For the formula to find interest, take the product of the examples above, more... I = Prt formula to determine the total amount of money the lender is paid the. Us | Advertise with Us | Advertise with Us | Facebook | Recommend this page simple interest and amount.... Only ) on an investment or savings of 18 % for 9 months as 3/12 of a,. 