Simple and Compound Interest

Front

The principle in the simple interest formula I=Prt is:

Back

the amount of money borrowed or deposited

Front

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

Back

$1,200

Front

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

Back

1392

Front

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

Back

Time

Front

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

Back

decimal

Front

Write the percent as a decimal: 4.3%

Back

.043

Front

The time has to be in _____________

Back

years

Front

It is the date on which the total amount borrowed with interest is to be completely repaid.

Back

Maturity Date

Front

How do you write 23% as a decimal?

Back

0.23

Front

Christine takes out a 4-year simple interest car loan for $15000 at a 3% interest rate. How much interest will she owe at the end of 4 years?

Back

$1800