Let's work together to fill in the missing words for Section 8.3, Simple Interest. Here’s what the missing words should be based on the context and content:

Summary:

Interest is the amount of money that we get paid for lending or investing money, or that we pay for borrowing money. The amount deposited or borrowed is the principal. The charge for interest, given as a percent, is the rate, assumed to be per year. Simple interest involves interest calculated only on the principal and is computed using:

$\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}$

or $I = P \times r \times t$.

Here are the missing words:

1. Interest
2. Principal
3. Rate
4. Simple interest

Would you like me to explain more about how simple interest works or how the formula is used? Feel free to ask for more details!

Here are five questions to expand on this:

1. How does simple interest differ from compound interest?
2. Can you explain how time affects the calculation of simple interest?
3. What are practical examples where simple interest is applied?
4. How do we calculate the rate if the interest and time are known?
5. How does using 360 days instead of 365 days affect the interest calculation?

Tip: Always ensure you convert the time and rate into the same time units (years, months, etc.) for accurate simple interest calculations.