Simple Interest Problems

Simple Interest Problems

Let's review your knowledge of solving simple interest problems.

Simple Interest Vocabulary

Interest earned/accured

Interest rate

Principal

Percent equation

Part

Percent

Whole

Multiple Choice

Which vocabulary term below, describes how much money is added to a loan or a savings account?

• Interest accrued/earned

• Interest rate

• Principal

• Percent Equation

Multiple Choice

Sarah got a loan for $5,000 to renovate her kitchen. She got an interest rate of 5.5%. What vocabulary word describes what the $5,000 is?

• Interest accrued/earned

• Interest Rate

• Principal

• Percent Equation

Multiple Choice

Which vocabulary term describes the percentage in a simple interest percent equation problem?

• Interest accrued/earned

• Interest Rate

• Principal

• Percent Equation

Setting up a simple interest problem with 1 year

Jennifer opened up a savings account with $750. She had a 5% interest rate. How much interest will she earn in one year?

• Determine the information that you know (part, percent, whole)

• If you know the percent change it into a decimal by dividing it by 100

• Input the numbers into the percent equation (part = percent • whole)

• Part is the interest earned/accrued for 1 year

• Percent is the interest rate

• Whole is the principal (the original amount in the account or loan)

Multiple Select

Jorge opened up a savings account with $300. He had a 3.5% interest rate. How much interest will he earn in 1 year?

Which of the following do we know that can help us solve this problem? (select all the ones that you know)

• whole (Principal)

• Part (interest earned)

• Percent (interest rate)

• years

Multiple Choice

Jorge opened up a savings account with $300. He had a 3.5% interest rate. How much interest will he earn in 1 year?

What am I trying to find?

• whole (Principal)

• Part (interest earned)

• Percent (interest rate)

• years

Multiple Choice

Jorge opened up a savings account with $300. He had a 3.5% interest rate. How much interest will he earn in 1 year?

Which percent equation below would help you correctly solve this problem?

• p = 3.5 • 300

• 3.5 = p • 300

• 300 = 0.035 • w

• p = 0.035 • 300

Multiple Choice

Jorge opened up a savings account with $300. He had a 3.5% interest rate. How much interest will he earn in 1 year?

This is the correct percent equation: p = 0.035 • 300

What do you have to do to solve this?

• Multiply 3.5 times 300

• Multiply 0.035 times 300

• divide 0.035 by 300

• divide 300 by 3.5

Practice solving simple interest problems with the percent equation

• 3 problems

• Determine what you do know

• Determine what you are trying to find

• Solve using division or multiplication

Multiple Choice

Jorge opened up a savings account with $300. He had a 3.5% interest rate. How much interest will he earn in 1 year?

What is the correct answer?

• $6.50

• $85.71

• $10.50

• $0.01

Multiple Choice

Mr. Patton opened up a savings account with $400. After 1 year he earned $32 of interest. What was the interest rate (percentage)?

• 32%

• 8%

• 4%

• 40%

Multiple Choice

Coach Leos got a $900 loan. She had an interest rate of 6%. How much interest will be accrued after 1 year?

• $906

• $27

• $150

• $54

Multiple Choice

Mr. Romero bought a new car for $25,000. He had an interest rate of 3%. How much interest will be accrued after 5 years?

• $750

• $1,500

• $3,750

• $833.33

Self Reflection: How do you think you are doing with solving simple interest problems?

The next few questions are polls. There are no correct answers, select the choice that best reflects where you are in your learning.

Poll

Rank yourself on the learning target.

LT: I can solve simple interest problems using the percent equation.

1- I don't get it at all

2- I kind of get but I can't do it by myself yet.

3- I can do it sometimes but I still make mistakes.

4- I can do it independently.

5- I could teach it to another person.

• 1

• 2

• 3

• 4

• 5

Poll

Can you determine the principal in a real world problem?

• Yes

• No

Poll

Select ALL of the skills that you can do.

• I can change a percent to a decimal. 5% --> 0.05

  and change a decimal to a percent 0.035 --> 3.5%

• I can determine the principal, interest earned/accrued and interest rate in a real world problem.

• I can correctly place numbers into the percent equation to solve a simple interest problem.

• I can find the interest rate (percent) if I know the part and whole.

• I can solve simple interest problems that include more than 1 year.

Open Ended

What do you need help on to better understand the learning target?