Understanding Simple and Compound interest

Front

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

Back

Time, in years

Front

Convert 18 months to years. 

Back

1.5 Years

Front

Write the decimal as a percent: 0.37

Back

37%

Front

Write the percent as a decimal: 4.3%

Back

.043

Front

What does the "I" in the interest formula stand for?

Back

Interest

Front

What does the "r" in the interest formula stand for?

Back

rate

Front

The Principal and Interest are always___________.

Back

money

Front

In the compound interest formula A=P(1+r)^t, what does the A stand for?

Back

The total amount

Front

In the compound interest formula A=P(1+r)^t, what does the P stand for?

Back

The principal amount (original amount)

Front

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

Back

compound ; highest