Simple Interest

Simple Interest

12/08/20

Multiple Choice

What is the formula for simple interest?

• T = pri

• I = prt

• R = ipt

• P = irt

Multiple Choice

The "p" in I = prt stands for...

• portion

• pre-Algebra

• percent

• principal

The "r" stands for rate and is going to be given to you in a percentage.

Multiple Choice

Since the rate is given to you in a percentage, we need to make it a decimal. How do we do that?

• move the decimal point 2 spaces to the left

• move the decimal point 2 spaces to the right

• divide it by the principal

• multiply it by the time

Multiple Choice

The "t" or time must always be expressed in...

• months

• days

• years

• hours

If your "t" isn't given to you in years, convert it.

• days = divide by 365 (leap years don't really count in finance)

• weeks = divide by 52

• months = divide by 12

Remember, we are talking about money, so you need dollars and cents.

Round to the nearest hundredth. No half pennies until we talk about investing (or debt) [Stay away from debt!!!!!].

Multiple Choice

Caleb starts off w/ $3 in a saving account. His rate is 20% per year. How much will he have in 4 years?

• 240.00

• $2.40

• $20.00

• $240.00

Multiple Choice

How much will Caleb have in his account in total?

• $5.40

• $242.40

• $2.40

• $7.80