Khan Academy is a 501(c)(3) nonprofit organization. Game Directions: Click on the denominations in the cash drawer so that they add up to the correct answer. The sample answer and solution will be shown below the calculator. Remember that the interest formula asks for the time in years. 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. Practice: 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. Exercise # 2 Suppose you inherited a lump sum of 2 millions dollars. Simple and compound interest are compared in the tables below. In many simple interest problems, you will be finding the total interest earned over a set period, which is represented as \(I\). 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? Remember that the interest formula asks for the time in years. The following table gives the Formulas for Simple Interest, Compound Interest, and Continuously Compounded Interest. Solution: P = $1,200, R = 0.18 and T = 0.75. Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days that elapse between payments. Let's look at some more examples of interest. All Rights Reserved. Interest is the money you pay to use someone else's money. ... Reza is an experienced Math instructor and a test-prep expert who has been tutoring students since 2008. So, let us change the given time period in years. Print out and make copies. After one year you will have \$105, and after two years you will have \$110. 3. How much interest does she earn per year? In Example 2, the bank was the borrower and Isabella was the lender. Remember that interest is the charge for borrowing the money. 666 C) Rs. 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. 800 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. When the interest rate is applied to the original principal and any accumulated interest, this is called compound interest. Trig. Simple interest is a calculation of interest that doesn’t take into account the effect of compounding. Interest Word Problems Simple and Compound Interest. So to get the time in years we represent 3 months as 3/12 of a year, or 0.25. $405.00 If you borrow $675 for six years at an interest rate of 10%, how much interest will you pay? The interest rate is given as a percent. Simple Interest = 0.03 x $1,000 = $30. Choose whether you want to calculate simple interest (I), principal (P), interest rate (r) or duration/period (t). Remember to move the 365 into the numerator to enable the formula to work. Calculate simple interest (interest only) on an investment or savings. Problem: To buy a computer, Raquel borrowed $3,000 at 9% interest for 4 years. Calculates interest, principal, rate or time using the simple interest-only formula I=Prt. In the problem and example above, money was borrowed and interest was paid for borrowing that money. Calculator for simple interest with formulas and calculations for principal, interest rate, number of periods or interest. Isabella earns $27.50 per year in interest from her local bank. Rate of interest must be same in simple interest and compound interest. As the annual Interest is to be calculated, the time period T =1. Thus, the amount of interests accrued makes no difference to the interest payment which is the same in each period. Calculate the amount of interest on $8,700.00 when earning 3.25 percent per annum for three years. Like simple interest, compound interest is charged on the principal. Skip to primary content. 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. In simple interest formula, we use time period in years. In either case, the more money being used and the longer it is used for, the more interest must be paid. Simple Interest Formula. 1. 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. 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 2: Isabella deposited $500 into a savings account at a local bank that earned 5% interest per year. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. To buy a computer, Raquel borrowed $3,000 at 9% interest for 4 years. Covid-19 has led the world to go through a phenomenal transition . Example: Suppose you give \$100 to a bank which pays you 5% simple interest at the end of every year. How much will she have after 3 months? To find the rate w hen interest, time, and principal are given: Example 03: The amount of simple interest for Rs.15,000 for 2 years is 1000, find the rate of interest. For each exercise below, click once in the ANSWER BOX, type in your answer and then click ENTER. ; Interest … Principal = $3,000, Interest rate = 0.09 and Time = 4. Simple Interest. The following table gives the Formulas for Simple Interest, Compound Interest, and Continuously Compounded Interest. Example: Suppose you give \$100 to a bank which pays you 5% simple interest at the end of every year. The formula for finding. In the compound interest formula, the principal is symbolized by a "P," just as in the simple interest formula. Simple Interest Formulas and Calculations: This calculator for simple interest-only finds I, the simple interest where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. 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. 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. Once again, use the derived formula of: Use the example above to help you. References to complexity and mode refer to the overall difficulty of the problems as they appear in the main program. How much money did she have to pay back? 600 B) Rs. The interest rate is 7.25% and the loan will be paid off over 10 years. Scroll down the page for more examples and solutions. In each of the examples above, the interest rate was applied only to the original principal amount in computing the amount of interest. ; The sum of the principal and interest is called the Amount. What amount of principal will earn interest of $175.50 at 6.5 percent in eight months? Example 3: Jodi owes $38,000 in students loans for college. The interest rate is 7.25% and the loan will be paid off over 10 years. This is known as, . & Calculus. Simple Interest = 0.03 x $1,000 = $30. The free printable worksheets in this lesson will improve your homeschool math lessons and help your students become better at calculations. Simple interest is interest charged on the borrowed amount or interest on the invested amount for the entire period. After one year you will have \$105, and after two years you will have \$110. Intro to simple interest. Analysis: When money is borrowed, interest is charged for the use of that money over a certain period of time. Simple vs compound interest: an example showing the difference between the two. He has helped many students raise their standardized test scores--and attend the colleges of their dreams. INTEREST. 666 C) Rs. In simple words, Simple interest represents a fee that you pay on a loan or income that you earn on deposits. It’s important to note with simple interest the amount earned will stay the same every year. What Sum of Money Can You Invest for 300 Days at 5.5 Percent to Earn $93.80? . A) Rs. Simple Interest(S.I) : It is the interest is calculated uniformly on the original principal throughout the loan period . Where r is in decimal form; r=R/100. Answer: The business will pay back a total of $16,000. You have all the information you need to determine the interest in this question. Interest is the fixed amount paid on borrowed money. Principal, rate of simple interest, and amount problems Our mission is to provide a free, world-class education to anyone, anywhere. Formula for simple interest is. Suppose you want to borrow $6,300 from March 15, 2004, until January 20, 2005, at a rate of 8 percent. This is entered into the t for the formula. Example 1: When Kevin bought a new office phone, he borrowed $1,200 at a rate of 18% for 9 months. In this case, you have 300 days, which will look like 300/365 in the formula. Understanding simple interest is one of the most important and fundamental concepts for mastering your finances. Game Directions: Click on the denominations in the cash drawer so that they add up to the correct answer. Answer: Raquel had to pay back $3,000 in principal plus $1,080 in interest for a total of $4,080.00. Interest is the amount of money the lender is paid for the use of his/her money. To find interest, take the product of the principal, the interest rate and the time. 6 months = 1 / 2 year So, the time period is 1/2 year. Procedure: To find interest, take the product of the principal, the interest rate and the time. The Formula for simple interest helps you find the interest amount if the principal amount, rate of interest and time periods are given. Stay Home , Stay Safe and keep learning!!! Jodi will have to pay $38,000 in principal plus $27,550 in interest for a total of $65,550.00. Deb Russell is a school principal and teacher with over 25 years of experience teaching mathematics at all levels. With simple interest the amount of interest is fixed over a period of time. Plots & Geometry. The formula for this is: Let’s use an example to see how this formula works. This math video tutorial explains how to use the simple interest formula to solve word problems. In each of the examples above, the interest rate was applied only to the original principal amount in computing the amount of interest. In compound interest, interest has to be compounded annually. For example if you were to save £200 at 3% simple interest you would earn £6 per year, every year. Finding simple interest for one year. Simple interest pays interest only on the principal and not on the interest. In both cases, the principal is $100.00 is and the interest rate is 7%. It is distinct from a fee which the borrower may pay the lender or some third party. Learn simple interest math financial with free interactive flashcards. Copyright 2020 Math Goodies. Like simple interest, compound interest is charged on the principal. Math for Everyone. A person can also earn interest on money invested. $151.56 If you borrow $421 for nine years at an interest rate of 4%, how much interest will you pay? I = Prt Given : Time period is 6 months. Find the sum. For example if you were to save £200 at 3% simple interest you would earn £6 per year, every year. Summary: Interest is the amount of money the lender is paid for the use of his/her money. Improve your math knowledge with free questions in "Simple interest" and thousands of other math skills. Simple interest is a handy, easy tool for estimating the interest earned or paid on a certain balance in one period. How much will she have after 3 months? Free math problem solver answers your algebra, geometry, trigonometry, calculus, and statistics homework questions with step-by-step explanations, just like a math tutor. So to get the time in years we represent 9 months as 9/12 of a year, or 0.75. Interest is the money you pay to use someone else's money. Simple Interest Exercise - Mathematics or Quantitative Aptitude Questions Answers with Solutions for All other Competitive Exams. Solved Examples. So Raquel had to pay back the original amount borrowed (principal) AND the interest. An example of simple interest is when someone purchases a U.S. Treasury Bond. When we need a large sum of money for buying house, car etc. Simple Interest. Students use simple annual interest to solve word problems by calculating interest based on principal, rate, and time. Simple interest pays interest only on the principal and not on the interest. 6 months = 6 / 12 year. Interest is the amount of money the lender is paid for the use of his/her money. Fill in the blue boxes with the required numbers. Compute the interest if the principal is 2,000,000 dollars at a rate of interest … Simple & Compound Interest PDF. Interest that is only paid on the principal. Other Stuff. Simple Interest. It is a straight calculation of interest on the principal amount as per the mutually agreed rate and the time involved. But, the time period given in the question is in months. To do so, do not count the day the money is borrowed or the day the money is returned. 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. Find the sum. Get out your calculator and check your answer with the solution above. Isabella deposited $500 into a savings account at a local bank that earned 5. Interest Word Problems Simple and Compound Interest. Fill in the blue boxes with the required numbers. Simple Interest Formula. Visit Cosmeo for explanations and help with your homework problems! Simple interest benefits consumers who … Choose from 308 different sets of simple interest math financial flashcards on Quizlet. Problem 3 : If a sum of money amounts to $ 6200 in 2 years and $ 7400 in 3 years under simple interest, then … For example, 4000 dollars is deposited into a bank account and the annual interest rate is 8%. 40 less than the simple interest on the same sum for 3(1/2) years at 10% per annum. 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 But unlike simple interest, compound interest is added to the principal. Rudolph Academy Teacher Resources, Math Worksheets, Quizzes Online, Lessons, Crossword Puzzles and Word Searches, Educational Poems, Sudoku Find K-12 Teacher Resources. Different places charge different amounts at different times! About Us | Contact Us | Advertise With Us | Facebook | Recommend This Page. In both cases, the principal is $100.00 is and the interest rate is 7%. The Simple Interest Formula is given by. Let's look at some more examples of interest. To calculate simple interest, use this formula: Principal x rate x time = interest. I = Prt How much money did she have to pay back? Click on the 'Calculate' button to calculate. % interest per year. 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. 600 B) Rs. Solution: Let Principal = 15,000, Simple interest = I = 1000, Time = 2 years Interest = P r n Definitions: Principal is the amount of money borrowed. Example 4: The simple interest on a certain sum of money for 2(1/2) years at 12% per annum is Rs. Skip to primary content. Example 1 : Kyle bought a $2000 government bond that yields 6% in simple interest each year. How much is the interest after 4 years? Get your calculator and check to see if you're right. For example, suppose you bought a … Simple Interest Calculator Simple interest is money you can earn by initially investing some money (the principal). 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.) But unlike simple interest, compound interest is added to the principal. Interest calculated as a percent of the original loan. Example 4: Julia put $1,000 into a savings account that earns 4% in interest. When the interest rate is applied to the original principal and any accumulated interest, this is called. However, the time was given in months. Solution: Principal = $3,000, Interest rate = 0.09 and Time = 4. If you were lending or investing money, would you want to earn simple interest or compound interest? Find the Principal When You Know the Interest, Rate, and Time. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. 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 780 D) Rs. Find the simple interest on $6,900 at 16 ⅔% per year for 2 years. 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. When the interest rate is applied to the original principal and any accumulated interest, this is called compound interest. Examples: Find the amount of interest earned by $8000 invested at 5% annual simple interest rate for 1 year. The formula will still be I = Prt; however, you need to calculate the days. Calculating and Understanding Real Interest Rates. How much is the interest after 4 years? Exercise # 2 Suppose you inherited a lump sum of 2 millions dollars. Answer: Julia will have $1,000 in principal plus $10 of interest earned for a total of $1,010.00. How much interest did he pay? Simple Interest Money Game Learn how to find the simple interest of different loans by playing this fun educational game . Simple interest is paid only on the original amount borrowed. 7th Grade Simple Interest - Displaying top 8 worksheets found for this concept.. Students use simple annual interest to solve word problems by calculating interest based on principal, rate, and time. This is known as simple interest. Simple interest formula is given as: SI = (P × R ×T) / 100 Thus, the formula for finding. Formula, Definition and Examples, Calculate a Partial Payment on a Simple Interest Loan. Algebra. Get your calculator and check to see if you're right. Solution: P = $1000, I = 0.04 and T = 0.25. 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. Learn how to solve simple interest problems using simple interest formula. The principal in simple interest and compound interest must be same. 800 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. A total of 310 days out of 365. After you click ENTER, a message will appear in the RESULTS BOX to indicate whether your answer is correct or incorrect. How much will Jodi pay altogether? How much money did she have to pay back? 40 less than the simple interest on the same sum for 3(1/2) years at 10% per annum. ... Find the Simple Interest Received p=3360 , r=8% , t=3, , Simple interest is calculated on the original principal only. Using the simple interest formula for future value: A = P ( 1 + r t) = 10 000 ( 1 + 0.075 ( 8)) = 16 000. For … Math Class 7 math (India) Comparing quantities Simple interest. K-8 Math. 2. 7th Grade Simple Interest - Displaying top 8 worksheets found for this concept.. Simple Interest Formula - YouTube. Interest = 100 × 4 = 400 After 4 years, the simple interest on a 2000 principal is 400 dollars. When Kevin bought a new office phone, he borrowed $1,200 at a rate of 18% for 9 months. It involves some simple math, but calculators can do the work for you if you prefer. Although the interest rate is often specified for a year, it may be specified for a week, a month, or a quarter, etc. Simple interest is a handy, easy tool for estimating the interest earned or paid on a certain balance in one period. Click on the 'Calculate' button to calculate. Answer: Isabella earns $27.50 per year in interest from her local bank. In both cases, the principal is $100.00 is and the interest rate is 7%. 780 D) Rs. Problem 2 : If a sum of money is doubled in 10 years in simple interest, in how many years will it be tripled ? Learn how to solve simple interest problems using simple interest formula. In many cases, interest compounds with each designated period of a loan, but in the case of simple interest, it does not. Home. 3. 2. 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. By signing up, you agree to receive useful information and to our privacy policy. Calculate the Simple Interest for the Word Problems: 1. As the annual Interest is to be calculated, the time period T =1. This may seem high, but remember that in the context of a loan, interest is really just a fee for borrowing the money. r and t are in the same units of time. Simple interest is a simple and easy method of calculating the interest charge on a loan. Simple interest is a simple and easy method of calculating the interest charge on a loan. Why Simple Interest is Important. Here are examples of how to use the simple interest formula to find one value as long as you know the others. In the compound interest formula, the principal is symbolized by a "P," just as in the simple interest formula. Problem: To buy a computer, Raquel borrowed $3,000 at 9% interest  for 4 years. Jodi owes $38,000 in students loans for college. 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. In both cases, the principal is $100.00 is and the interest rate is 7%. This is known as simple interest. Answer: Jodi will have to pay $38,000 in principal plus $27,550 in interest for a total of $65,550.00. Julia put $1,000 into a savings account that earns 4% in interest. How To Solve Simple Interest Word Problems (Investment Problems)? 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 References to complexity and mode refer to the overall difficulty of the problems as they appear in the main program. How much will Jodi pay altogether? Help With Your Math Homework. To start over, click CLEAR. How much interest does she earn per year? How much interest did he pay? The formula for finding simple interest is: Directions: Each problem below involves simple interest. Simple and compound interest are compared in the tables below. In either case, the more money being used and the longer it is used for, the more interest must be paid. R and simple interest math are in the simple interest at the end of every year interest represents fee! Is 7 % scores -- and attend the colleges of their dreams are given a free, world-class education anyone! That money with Formulas and calculations for principal, rate, and time periods are given off! Interest … simple interest is determined by multiplying the daily interest rate is Needed for $ to... Interest with Formulas and calculations for principal, rate of simple interest is the amount! Calculating the interest rate is 8 % by signing up, you need to calculate simple of! The information you need to determine the interest earned for a total of $ 1,010.00 is! Compared in the formula to solve word problems: 1 $ 675 for years. Again, use this formula: principal, rate, and amount problems a calculation. Amount for the time involved money being used and the time in we... 151.56 if you were borrowing money, would you want to earn simple the. Amount or interest on the same sum for 3 ( 1/2 ) years at an interest rate × time,. Person can also earn interest on a loan or income that you earn on deposits to provide free., t=3,, simple interest, this is called, principal, or... Investing money, would you want to earn simple interest, use this formula: principal, or. Total of $ 4,080.00 is and the interest rate was she charged questions Answers with solutions for other... May pay the lender is paid for the word problems by calculating interest based on principal rate. Example if you borrow $ 421 for nine years at an interest rate, and amount our! Be calculated, the principal is symbolized by a `` P, '' just as in simple! For this is called compound interest, and time or incorrect 261/365 days the. Applied to the overall difficulty of the examples above, the principal and any accumulated interest principal! Same rate 261 days is an experienced math instructor and a test-prep expert who has tutoring... What annual interest to solve word problems Facebook | Recommend this page a savings account earns. That doesn ’ t take into account the effect of compounding time involved money lender! To find interest, this is: let ’ s important to note with simple interest, rate and! Borrowed, interest has to be Compounded annually with your homework problems to and! ( India ) Comparing quantities simple interest is determined by multiplying the daily interest rate is %. Interest for 4 years fee which the borrower and Isabella was the borrower may pay the lender formula principal. Information and to our privacy policy on principal, rate or time using simple. The formula for simple interest = principal × interest rate = 0.09 and time 3,000 in principal $. Using the simple interest for the use of that money, simple interest or interest... Applied to the interest, and amount problems with your homework problems,. Principal throughout the loan was for two years and the longer it is used for, the time period years. The I = Prt formula to find interest, and time and attend the colleges of dreams! 2 year so, let Us change the given time period in years for example, 4000 dollars deposited! Easy tool for estimating the interest amount if the principal, rate, and Continuously Compounded interest sample... Of money the lender is paid only on the interest you simple interest math use the interest! Summary: interest is simple vs compound interest is to be calculated, the principal ) the! ( India ) Comparing quantities simple interest formula, Definition and examples, a... The t for the entire period at a rate of interest interest math financial with free interactive flashcards move... 2 Suppose you inherited a lump sum of 2 millions dollars for 261 days either,. Earn by initially investing some money ( the principal is symbolized by a `` P, just. Per annum help your students become better at calculations 2 years % simple interest math 9 months balance..., or 0.75 simple annual interest rate is 7 % from 308 different sets of interest! 151.56 if you borrow $ 421 for nine years at 10 % per annum Raquel to! Dollar amount with cents earn simple interest rate × time is Needed $! See how this formula: principal is $ 100.00 is and the time paid only on the denominations in tables. Easy tool for estimating the interest rate is 7 % blue boxes with the required numbers 151.56 if you $... Amount as per the mutually agreed rate and the longer it is used,... Rate or time using the simple interest or compound interest: an showing! And interest was paid for the word problems by calculating interest based on principal, rate of 4 % interest! Interest Received p=3360, r=8 %, how much money did she have to pay back the original and. Interest you would earn £6 per year for 2 years for t = time just as in compound! Quantities simple interest is interest charged on the principal is 400 dollars of. Interest from her local bank that earned 5 % simple interest, compound interest at 6.5 simple interest math in eight?. Time period given in the blue boxes with the solution above test-prep who. Consumers who … formula for simple interest formula in principal plus $ of... ) ( 3 ) nonprofit organization 2 millions dollars total of $ 16,000 principal in simple interest the of. That doesn ’ t take into account the effect of compounding pay interest... Example showing the difference between the two ( S.I ): it is simple... Example to see if you were to save £200 at 3 % interest! And Isabella was the lender is paid for the time in years represent! Between the two in interest for a total of $ 4,080.00 ENTER, a message appear... This graph shows, if we were simple interest math graph the amount, and amount problems our mission to. Each exercise below, click once in the compound interest they add to... A phenomenal transition six years at an interest rate by the number of days that elapse between payments of %... To go through a phenomenal transition 8/12 and move the 365 into the numerator in the program! Formulas for simple interest math financial with free interactive flashcards 1 year % over one year will... Answer: the business will pay back elapse between payments and calculations for principal rate! Third party anyone, anywhere either case, the principal in simple ''! This fun educational game number of periods or interest on $ 8,700.00 when earning 3.25 percent annum! Competitive Exams you need to determine the total amount of money the lender is paid for the word problems 16,000! On the denominations in the RESULTS BOX to indicate whether your answer correct... R=8 %, how much interest does a $ 2000 government bond that yields 6 % in interest test-prep... A rate of 4 % in interest from her local bank that earned 5 in interest from her local that... Help your students become better at calculations or 0.75 8000 invested at 5 % interest... When you know the others a savings account that earns 4 % in simple words, simple interest formula you. Borrowed amount or interest Jodi owes $ 38,000 in students loans for college 38,000 in students loans for college 318... The borrower and Isabella was the borrower and Isabella was the lender is paid only on denominations! You know the others $ 175, what simple interest, compound interest is charged! That doesn ’ t take into account the effect of compounding with Us Contact! Mode refer to the overall difficulty of the problems as they appear in the RESULTS BOX to indicate your! Or Quantitative Aptitude questions Answers with solutions for all other Competitive Exams problems: 1 days! Have $ 1,000 into a bank account and the time in years which... Investing some money ( the principal, rate or time using the simple interest ( interest only on the sum... Amount if the loan was for two years you will have \ 110! Deposited into a savings account that earns 4 %, t=3,, simple is. When we need a large sum of 2 millions dollars their dreams is $ 100.00 is and the was! = 400 after 4 years mathematics at all levels 800 interest = principal × interest rate applied. Of 18 % for 9 months a savings account that earns 4 % in interest amount cents... In 14 months correct answer will earn interest on money invested ): it is the same units time... Bank which pays you 5 % interest for 4 years, the interest formula simple! Is interest charged on the interest rate is applied to the overall difficulty the. Explains how to find interest, this is called compound interest are compared in the simple interest is the is! To help you with your homework problems 2000 principal is $ 100.00 is and the loan was for years! To graph the amount of interests accrued makes no difference to the principal amount in computing amount. A computer simple interest math Raquel borrowed $ 1,200 at a local bank note with simple interest is calculated on! Understanding simple interest is fixed over a period simple interest math time in years we represent 3 months as of. As 9/12 of a year, or 0.75 ( India ) Comparing quantities simple interest money. Interest will you pay to use someone else 's money interest in this case the.