Simple and Compound Interest

Front

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

Back

Interest

Front

Write the percent as a decimal: 4.3%

Back

.043

Front

In the formula I = Prt, what must rates be converted into before multiplying?

Back

decimals

Front

What is the formula for simple interest?

Back

I=Prt

Front

If a bank offers 2.5% simple interest on a savings account, how much interest will you earn on a $5,000 deposit in three years?

Back

$375

Front

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

Back

Principal amount (initial investment)

Front

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

Back

Rate of interest (as a decimal)

Front

What does 't' represent in the simple interest formula I = Prt?

Back

Time (in years)

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

If you invest $1,000 at a 5% simple interest rate for 4 years, how much interest will you earn?

Back

$200