simple interest INTEREST ONLY

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

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800

• $1,000

• $1,200

• $1,500

Ann puts $300 in a bank account earning 4% simple interest. How much will she earn in interest in 1 year?

• 4

• 8

• 12

• 16

Simple interest

Starting money = $350.

Interest rate = 2.5%

Time = 3 years.

How much interest?

• 7.50

• 26.25

• 87.5

• 262.50

Principal = $800

Interest Rate = 3.5%

Time = 6 months

Find the interest earned.

• 14

• 140

• 168

• 16.80

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800

• $1,000

• $1,200

• $1,500

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

• $120

• $144

• $1,200

• $1,440