Using Simple Interest Formula

Simple Interest

by Renee Duncan

​I = the amount your money earns or you pay

​P = the amount of money you put in the bank

​R = amount of the percentage the bank give you for leaving your money in the bank or the amount you pay the bank for borrowing money - may be written for example as 4%, remember that 4% means 4/100 or .04.

​T - the amount of time in years your money is earning interest or that you are paying interest

Multiple Choice

What does the I in the simple interest formula represent?

• the amount of money you put in the bank or borrow from the bank

• the percentage your money earns

• the amount of money the bank gives you for putting your money in or the extra money you pay on a loan

• the amount of time usuually in years your money earns interest

Multiple Choice

What does the p in the formula I=prt represent?

• interest

• principal

• rate

• time

Multiple Choice

What does the r in the simple interest formula represent?

• interest

• rate

• time

• principal

Multiple Choice

What does the t in the simple interest formula represent?

• interest

• time

• rate

• principal

A $900 deposit for 20 years with at a simple rate of 4%

​

​

​What is the interest?

Multiple Choice

A $900 deposit for 20 years with at a simple rate of 4%

What is the interest?

• $720.00

• $1,620.00

• $18,000

• $920

​What is the total value

​A $900 deposit for 20 years with at a simple rate of 4%

Multiple Choice

A $900 deposit for 20 years with at a simple rate of 4%

What is the Total value?

• $720

• $1,620.00

• $18,000

• $920

​A $5,600 deposit for 45 years at a simple interest rate of 3%

​

​What is the interest?

Multiple Choice

A $5,600 deposit for 45 years at a simple interest rate of 3%

What is the interest?

• $13,160

• 45 years

• $7, 560

• $5,648

​Danielle borrows $2,500 from the bank at 6% simple interest for 5 years. How much is Danielle going to pay in interest?

Multiple Choice

Danielle borrows $2,500 from the bank at 6% simple interest for 5 years. How much is Danielle going to pay in interest?

• $2,556

• $12,500

• $13,160

• $750

Terry invests $6,000 in a CD at an annual interest rate of 7%. What will his total investment be worth at the end of six months?​

Multiple Choice

Terry invests $6,000 in a CD at an annual interest rate of 7%. What will his investment be worth at the end of six months?

• $420

• $210

• $6,210

• $6,420

​An $800 deposit for 24 months earned $200 in interest

​

What piece of information is missing

Multiple Choice

An $800 deposit for 24 months earned $200 in interest

What piece of information is missing

• interest

• rate

• time

• principal

An $800 deposit for 24 months earned $200 in interest

​

What three pieces of information are given

Multiple Choice

An $800 deposit for 24 months earned $200 in interest

What three pieces of information are given

• principal

  rate

  time

• principal

  interest

  rate

• principal

  interest

  time

• time

  rate

  interest

An $800 deposit for 24 months earned $200 in interest

​

What is the rate?​

Multiple Choice

An $800 deposit for 24 months earned $200 in interest

What is the rate?

• $24

• 24%

• 12.5%

• 24%

​A $1,595 deposit for 10 years at a simple interest rate of 8%

​

What pieces of the simple interest formula are given?

Multiple Choice

A $1,595 deposit for 10 years at a simple interest rate of 8%

What pieces of the simple interest formula are given?

• principal

  interest

  rate

• principal

  time

  interest

• time

  rate

  interest

• principal

  time

  rate

​A $1,595 deposit for 10 years at a simple interest rate of 8%

​

What are we solving the equation to find?

Multiple Choice

A $1,595 deposit for 10 years at a simple interest rate of 8%

What are we solving the equation to find?

• principal

• time

• interest

• rate

​A $1,595 deposit for 10 years at a simple interest rate of 8%

​

What is the interest?

Multiple Choice

A $1,595 deposit for 10 years at a simple interest rate of 8%

What is the interest?

• $1,276.00

• $127.60

• $12,760.00

• $800

A deposit earns $102 after 36 months at a simple interest rate of 5%

​

What are we solving the equation to find?

Multiple Choice

A deposit earns $102 after 36 months at a simple interest rate of 5%

What are we solving the equation to find?

• rate

• time

• interest

• principal

​A deposit earns $102 after 36 months at a simple interest rate of 5%

​

What is the principal?

Multiple Choice

A deposit earns $102 after 36 months at a simple interest rate of 5%

What is the principal?

• $102

• $36

• 5%

• $680

Open Ended

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