Simple Interest Review

Simple Interest Review

Vocabulary and Formula

Multiple Choice

I=Prt

• Simple Interest formula

• compound interest formula

Multiple Choice

What does the P stand for in the I=Prt

• principal is money borrowed or invested

• rate

• time

Multiple Choice

Rate is the percent of Principal charged or earned?

• false

• true

Multiple Choice

t in the formula I=Prt means

• today

• time money was invested in years

• total

Multiple Choice

How do you find the total amount earned or borrowed

• Total amount = Principal + interest

• add the money together

• subtract principal from interest

Multiple Choice

what is 5% as a decimal

• .5

• .05

• 5

Multiple Choice

What is 20% as a decimal?

• 20

• 20.00

• .20

Multiple Choice

What is 3.5% as a decimal?

• .035

• 3.5

• 35

Multiple Choice

What is .10% as a decimal?

• 10

• 1.0

• .0010

Multiple Choice

Calculate the simple interest

I=prt

Principal =$250

rate= 4%

time= 3 years

• $30

• $300

• .3

Multiple Choice

Calculate I=Prt

Principal $780 rate 3.8% time 2 years

• $50

• $59.28

• 100

Multiple Choice

Ms. Samuel wants to borrow $18,500 for 12 years at a rate of .4%

How much interest will she pay to the investor?

Calculate the simple interest I=Prt

• 700

• 800

• $888.00