Simple Interest Practice

Front

Convert 18 months to years.

Back

1.5 Years

Front

The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a______.

Back

decimal

Front

Principal = $500, Interest rate = 5%, Time = 5 years. What is the interest earned?

Back

$125

Front

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

Back

$1,200

Front

The simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.

Back

the amount of money borrowed or deposited

Front

What is the formula for calculating simple interest?

Back

I = P * r * t

Front

If the principal is $1,000 and the interest rate is 4% for 3 years, what is the interest earned?

Back

$120

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

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

Back

Interest earned.

Front

If you have an interest rate of 8%, what is it in decimal form?

Back

0.08