Analyze and Solve Percent Problems

Front

What is simple interest?

Back

Simple interest is the interest calculated only on the principal amount, or the original amount of money deposited or borrowed.

Front

How do you calculate simple interest?

Back

Simple Interest (SI) = Principal (P) × Rate (R) × Time (T) where R is in decimal form.

Front

What is the formula to find the principal amount when given interest earned, rate, and time?

Back

Principal (P) = Interest (I) / (Rate (R) × Time (T))

Front

What does percent change represent?

Back

Percent change describes how much a quantity has changed relative to its original amount, calculated as ((New Value - Old Value) / Old Value) × 100.

Front

If Kelly earns $126 in interest at a rate of 1.2% over 7 years, how much did she deposit?

Back

Kelly deposited $1,500.

Front

What is the percent of a number?

Back

To find a percent of a number, multiply the number by the percent (in decimal form). For example, 0.8% of 1,046 is 1,046 × 0.008 = 8.368.

Front

How do you find the interest earned on a loan?

Back

Interest earned on a loan can be found using the formula: Interest (I) = Principal (P) × Rate (R) × Time (T).

Front

What is the interest earned on $800 at a rate of 4.5% over 2 years?

Back

The interest earned is $72.

Front

What is a Certificate of Deposit (CD)?

Back

A Certificate of Deposit (CD) is a savings account that earns a fixed interest rate for a specified period of time.

Front

How much interest will Ethan earn on $700 at 1.8% over 6 years?

Back

Ethan will earn $75.60 in interest.