Simple Interest (4B)

​Simple Interest-

Interest:

• Interest is the cost of borrowing money.

• It is the amount of money charged for borrowing or using money.

• When you deposit money into a savings account, you are paid interest.

​

Simple interest is one type of fee paid for the use of money.​

Some text here about the topic of discussion

• ​S.I = Simple Interest

• P = principal-the amount initially borrowed.

• R= rate- This is the rate of interest at which the principal amount is given to someone for a specific time

  • The rate of interest is usually a percentage (%).

• T= Time​- Time is the duration the principal amount is given to someone.

​

Audio Response

Based on the video you just watch, explain what you understand about what Simple Interest is?

Open Audio Recorder

Multiple Choice

Write the percent as a decimal. 
4.3%

• 4.3

• .43

• .043

• 4300

Multiple Choice

Write the decimal as a percent. 
0.37

• 37%

• 3.7%

• .37%

Multiple Choice

Convert 18 months to years. 

$$Convert\ from\ months\ to\ years\ =\frac{Number\ of\ Months}{12}$$  

• 18 Years

• 1.5 Years

• .18 Years

• You cannot change it to years.

Multiple Choice

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

Note: This will Principal + Interest

$$I=PRT$$  

• $150

• $192

• $1350

• $1392

Multiple Choice

Principal = $500 Interest rate =5% Time = 5 years What is the interest earned?

$$I=PRT$$  

• 95

• 105

• 125

• 135

Multiple Choice

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

$$I=PRT$$  

• $120

• $144

• $1,200

• $1,440

Multiple Choice

Jenna borrowed $5,000 for 3 years and had to pay $1,350 simple interest at the end of that time. What rate of interest did she pay?

• 6%

• 6%

• 8%

• 9%

Multiple Choice

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

Multiple Choice

What does the "I" in the interest formula stand for?

• Important

• Interest

• Internet

• Igloo

Multiple Choice

What does the "r" in the interest formula stand for?

• Principal

• Interest

• rate

• time

Multiple Choice

The Principal and Interest are always___________.

• fraction

• decimal

• percent

• money

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?

• divide 12 by the months

• divide the months by 12

• multiply 12 times the months

• change the months to a decimal

Multiple Choice

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $16

Multiple Choice

Kermit took out a 4 year loan for $5,500. He had to pay a total of $1,870 in interest payments. What rate did he pay for his loan?

• 85%

• 5.5%

• 8.5%

• 14%

Fill in the Blanks

Principal = $500
Interest earned in 4 years = $60.
Find the interest rate.

Multiple Choice

9 months is how many years?

• .5
• .75
• .25

Fill in the Blanks

Anna invested $2,500 at an annual rate of 5%.  How long will it take until Anna earns $1,125 in interest?