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Simple Interest
 1) What is the formula to calculate Simple Interest? (Time - T, Principal - P, Rate - R) P * R / T P * R * T R * T / P P / R * T

 2) What does the "P" represent in the Simple Interest formula? Principal amount Time Percentage Interest rate

 3) If you borrow \$1000 at a Simple Interest rate of 5% for 2 years, how much interest will you pay? \$200 \$50 \$500 \$100

 4) If you invest \$5000 at a Simple Interest rate of 3% for 5 years, how much interest will you earn? \$750 \$500 \$250 \$150

 5) What is the difference between Simple Interest and Compound Interest? There is no difference between Simple Interest and Compound Interest. Simple Interest is always higher than Compound Interest. Simple Interest is charged on the principal amount only, while Compound Interest is charged on the principal plus the accrued interest. Simple Interest is calculated annually, while Compound Interest is calculated monthly.

 6) If you borrow \$500 at a Simple Interest rate of 8% for 3 years, what is the total amount you will have to repay? \$680 \$620 \$740 \$560

 7) If you invest \$2000 at a Simple Interest rate of 4% for 1 year, what will be the total amount you will receive at the end of the year? \$2080 \$2020 \$2008 \$2040

 8) What is the Simple Interest on a \$3000 loan at a rate of 7% for 6 months? \$210 \$420 \$105 \$315