Finance

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

• Principal
• Interest
• Rate
• Time

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

If the time is given in months, you must first _____________ by 12.

• add
• subtract
• multiply
• divide

The Principal and Interest are always___________.

• fraction
• decimal
• percent
• dollar amount

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

• $150
• $192
• $1350
• $1392

Principal = $350.
Interest rate = 2.5% p.a. simple interest
TIme = 3 years.
How much interest is earned?

• $7.50
• $26.25
• $87.5
• $262.50

Sandy borrows $1200 from a bank with 8% p.a simple interest.  What is the total amount he will have to be pay back in 2 years?

• $150
• $192
• $1350
• $1392

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

• $120
• $144
• $1,200
• $1,440

Mr. Peterson paid $1,020 in interest for a loan, which was given to him at a rate of 5% p.a simple interest for 3 years.  How much money did he borrow originally?

• $5,400
• $6,800
• $3,240
• $14,620

Jack deposited $1,400 in his bank account.  After 3 years, the account earned $294 in interest.  Find the simple interest rate.

• 5%
• 8%
• 7.25%
• 7%