Simple Interest

Simple Interest

4-6

What to know

Interest Amount = Interest Rate x Principal

I = r x P

Solve

Victoria opens a savings account with a deposit of $300. She will earn 1.6% simple interest each year on her money.  How much interest will she earn over 5 years (assuming she doesn’t add or take out money). Use I=r x P.

Multiple Choice

Victoria opens a savings account with a deposit of $500. She will earn 3.1% simple interest each year on her money. How much interest will she earn over 3 years (assuming she doesn’t add or take out money). Use I=r x P.

• $32.50

• $39.16

• $46.50

• $49.15

Multiple Choice

Gina opens a savings account with a deposit of $700. She will earn 6.1% simple interest each year on her money. How much interest will she earn over 4 years (assuming she doesn’t add or take out money). Use I=r x P.

• $163.63

• $170.80

• $184.74

• $190.52

Solve

Maya's older sister got a loan to buy a used car for $3,400. If her interest totals $8.50 for one month, what is the interest rate on the loan?

Multiple Choice

Maya's older sister got a loan to buy a used car for $2,200. If her interest totals $6.20 for one month, what is the interest rate on the loan? Use I= r x p

• 3.9%

• 3.4%

• 2.8%

• 1.2%

Multiple Choice

Maya's older sister got a loan to buy a used car for $5,200. If her interest totals $6.30 for one month, what is the interest rate on the loan? Use I= r x p

• 4.1%

• 3.7%

• 2.6%

• 1.5%

Multiple Choice

Maya's older sister got a loan to buy a used car for $2,100. If her interest totals $8.30 for one month, what is the interest rate on the loan? Use I= r x p

• 4.7%

• 3.3%

• 2.1%

• 1.8%

Solve

Jake opened a savings account that earns 1.5% interest. Jake estimates that, assuming he neither adds to nor withdraws from his account, he will earn $240 in interest after 10 years. How much did Jake deposit when he opned the account? Use I= r x P

Multiple Choice

Jake opened a savings account that earns 2.5% interest. Jake estimates that, assuming he neither adds to nor withdraws from his account, he will earn $540 in interest after 8 years. How much did Jake deposit when he opened the account? Use I= r x P

• $2,500

• $2,700

• $2,900

• $3,100

Multiple Choice

Jake opened a savings account that earns 4.5% interest. Jake estimates that, assuming he neither adds to nor withdraws from his account, he will earn $640 in interest after 3 years. How much did Jake deposit when he opened the account? Use I= r x P

• $4,741

• $5,623

• $6,613

• $7,167

Multiple Choice

Jake opened a savings account that earns 5.5% interest. Jake estimates that, assuming he neither adds to nor withdraws from his account, he will earn $940 in interest after 7 years. How much did Jake deposit when he opened the account? Use I= r x P

• $2,831

• $2,442

• $1,634

• $1,132