Simple Interest

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

Multiple Choice

The simple interest formula is I=Prt.  The P represents the principal.  The principal is ___________________.  

• the amount of money borrowed or deposited

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

Multiple Choice

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction

• decimal

• ratio

• dollar amount

Multiple Choice

Convert 18 months to years. 

• 18 Years

• 1.5 Years

• .18 Years

• You cannot change it to years.

Multiple Choice

The Principal and Interest are always___________.

• fraction

• decimal

• percent

• money

Multiple Choice

Write the percent as a decimal. 
4.3%

• 4.3

• .43

• .043

• 4300

Multiple Choice

What is 7.25% converted to a decimal?

• .725

• 0.725

• 0.0725

• 7.25

Multiple Choice

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

• 95

• 105

• 125

• 135

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

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

Fill in the Blank

If you have an interest rate of 6.5%, what is the decimal form?

Fill in the Blank

If you have an interest rate of 22%, what is the decimal form?

Fill in the Blank

If you have an interest rate of 9%, what is the decimal form?

Fill in the Blank

Jimmy is investing $6,800 for 3 years in an account that gets 4.2% simple interest annually. How much will he have in interest after the three years?

Fill in the Blank

Monica is borrowing $9,600 for 6 years in an account that gets 3% simple interest annually. How much will she have in interest?

Fill in the Blank

Harmon is depositing $5,500 into a savings account with a simple interest rate 5.4%. She plans on leaving her money in the account for 7 years, what interest will she earn on her money?

I = P x R x T