Simple Interest

Simple Interest

Standard: 7.RP.3

Use scale factors and unit rates in proportional relationships to solve ratio and percent problems.

I can solve problems with simple interest.

Simple Interest

• I=Prt

• I=Interest, P=Principal, r=Rate as a decimal, T=Time in years

Multiple Choice

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

• the amount of money borrowed or deposited

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

Multiple Choice

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

• fraction

• decimal

• ratio

• dollar amount

Multiple Choice

If you are calculating the simple interest and you are given the time in months, how can you find the time in years?

• Add 12 to the months

• divide the months by 12

• multiply 12 times the months

• You cannot change it to months.

Multiple Choice

Convert 18 months to years. 

• 18 Years

• 1.5 Years

• .18 Years

• You cannot change it to years.

Multiple Choice

The Principal and Interest are always___________.

• fraction

• decimal

• percent

• money

Multiple Choice

Write the percent as a decimal. 
4.3%

• 4.3

• .43

• .043

• 4300

Multiple Choice

What is 7.25% converted to a decimal?

• .725

• 0.725

• 0.0725

• 7.25

Multiple Choice

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

• 95

• 105

• 125

• 135

Multiple Choice

You borrowed 43,800 at a SIMPLE interest rate of 4.8%. If you pay it back in 2 years, how much interest is paid pack?

• $464,280

• $85,848

• $4204.8

• $48,004.80

Multiple Choice

Allison was left an inheritance from her Aunt Lisa. She can not touch the money until she is 21 years old, Allison is now 12 years old and inherited $50,000 that was put into an account with 2% interest. How much interest will Allison have earned at her 21st birthday?

• $900

• $100,000

• $9,000

Multiple Choice

Javon has a credit card with a $1,583 balance. His interest rate is 8.8%. If he does not pay for 3 years, how much interest does he owe?

• $4,179

• $417.91

• $133,930

• $41,791

Multiple Choice

Christian opened a savings account with $3250. His account will earn 5.2% simple interest. How much money will be in his account after 6 years?

• $4,264.00

• $1,104.00

• $1,100.00

• $4,400.00

Multiple Choice

Jenna borrowed $5,000 for 3 years and had to pay $1,350 simple interest at the end of that time. What rate of interest did she pay?

• 6%

• 6%

• 8%

• 9%

Upcoming:

OMS 4.14 Solve Problems with Percent

• Learn

• Practice

Some text here about the topic of discussion