FLASHCARD | Calculating Simple Interest

Front

Convert the rate given as a percent (%) to a ______ before using it in the simple interest formula.

Back

decimal

Front

The principle in the simple interest formula I=Prt

Back

the amount of money borrowed or deposited

Front

Starting money = $350.
Interest rate = 2.5%
Time = 3 years.
How much interest?

Back

$26.25

Front

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

Back

12

Front

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Back

$1,200

Front

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

Back

12

Front

If you are calculating the simple interest and you are given the time in months, how can you find the time in years? Options: Add 12 to the months, divide the months by 12, multiply 12 times the months, You cannot change it to months.

Back

divide the months by 12

Front

What does the t represent in the simple interest formula I=Prt?

Back

Time, in years

Front

What does the "I" in the interest formula stand for? Options: Principal, Interest, Rate, Time

Back

Interest

Front

Maria borrowed $3,000 at a simple interest rate of 4% per year. How much did she have to repay after 4 years?

Back

$3,480