Simple and Compound Interest

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50

• $26.25

• $87.5

• $262.50

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

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

• $150

• $192

• $1350

• $1392

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

• $800

• $1,000

• $1,200

• $1,500

Principal = $800

Interest Rate = 3.5%

Time = 6 months

Find the interest earned.

• $14

• $140

• $168

• $16.80

(Simple Interest)
What was the interest rate if your balance on an investment of $830 at the end of one year is $871.50? 

• 5% 

• 4%

• 41.5%

• 7%

Determine the interest when depositing $225 into a savings account at a rate of 5% per year for 3 years.

• $33.75

• $25.78

• $258.75

• $3375.00

(Simple Interest)

How much principal must be invested to earn $403.20 in seven years at an interest rate of 9%?

• $600.00

• $36.29

• $254.02

• $640.00

(Simple Interest)
How long must $217 be invested at a rate of 6% to earn $78.12 in interest? 

• 6 years

• 4 years

• 8 years

• 2 years

Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $6500 to purchase.  The bank said that she could get a simple interest rate of 8% for 5 years.  What is the total amount that Beyonce will pay for the chair?

• $2600

• $910

• $9100

• $260