Exercises: Simple Interest

Use the formula $I = \frac{P \times R \times T}{100}$ to find the simple interest when $P = 40{,}000$ shillings, $R = 5\%$, and $T = 3$ years.

If the principal is 40,000 shillings and the interest earned is 6,000 shillings, what is the total amount?

What is simple interest, and why is it called "simple"?

Akello saves 50,000 shillings in a bank at $8\%$ per year. Calculate the interest after 2 years.

Okello borrows 100,000 shillings at $10\%$ per year. How much interest will he pay after 3 years?

A trader borrows 200,000 shillings at $12\%$ per year for 6 months. Calculate the interest. (Hint: 6 months = 0.5 years.)

A farmer saves 80,000 shillings at $5\%$ per year for 4 years. Calculate the simple interest.