Simple Interest Review

Simple Interest Review

by K'Yana McLean

Multiple Choice

What proportion is set up correctly for the question:

Marcy borrowed money from the bank in order to buy the new iPhone, the new iPad Air and a pair of AirPods. The total amount of money that she needed to borrow was $4000. She set up a payment plan so she could pay the bank back in 3 years. The bank is going to charge her 10% interest per year. How much will she pay back in total?

• $$\frac{3}{10}\ =\ \frac{x}{4000}$$  

• $$\frac{10}{100}\ \ =\ \ \frac{x}{4000}$$  

• $$\frac{10}{4000}\ \ =\ \ \frac{x}{3}$$  

• $$\frac{100}{4000}\ \ =\ \frac{x}{10}$$  

Multiple Choice

Now that we have solved for "x", what do we need to do next?

• Nothing, we are finished with the question

• Add the interest back to the starting value

• Set up a proportion with the other problems in the questions

• Multiple that answer by the number of years in the questions

​Steps for solving Simple Interest

• ​Set up your proportion and solve for x

• ​Multiply the value that you got for x by the time frame in the questions

• ​Add the interest back to the original answer if you need to

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

Draw

Set up a proportion for this problem: You want to buy amazing christmas gifts for everyone in your family, but you are completely broke. You decide to get a loan for $775 and promise to pay the bank back in 6 months. The bank is going to charge you 11% interest. How much will you pay in total?

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

Alexis opened an account with $35. The account she opened earns simple interest at a rate of 8.6%. How much money will her account have in 4 months?

• $47.04
• $35.04
• $36.00

• $38.01