Understanding Simple Interest
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Beginner
Start here! Easy to understand
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Beginner Explanation
Simple explanation with $I = p r t$ where interest is calculated on the principal only.
Practice Problems
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1
Quick Quiz
Single Choice Quiz
Beginner
What is the simple interest on a principal of $1000 at a rate of 5% per annum after 3 years?
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2
Real-World Problem
Question Exercise
Intermediate
Teenager Scenario
Alex wants to save money for a new bike. They deposit $500 in a savings account that offers 4% interest per annum. How much interest will Alex earn in 2 years?
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3
Thinking Challenge
Thinking Exercise
Intermediate
Think About This
If a loan of $2000 is taken at an interest rate of 6% per annum, how much total amount will be paid after 5 years, including the interest?
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4
Challenge Quiz
Single Choice Quiz
Advanced
A bank offers two different savings accounts. Account A offers 4% simple interest per annum, and Account B offers 3% compound interest per annum. If you deposit $1000 in each, which account gives more interest after 3 years?
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Recap
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