simple and compound interest

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

• Principal

• Interest earned

• Rate

• Time

Maria borrowed $3,000 at a simple interest rate of 4% per year.  How much did she have to repay after 4 years?

• $480
• $3,480
• $4,800
• $7,800

Tags

CCSS.7.RP.A.3

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

• Principal
• Interest
• rate
• time

Tags

CCSS.7.RP.A.3

The simple interest formula is I=Prt. What does the t represent?

• Principal

• Interest

• years

• Percent Rate

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

• $120

• $144

• $1,200

• $1,440

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

• Principal
• Interest
• rate
• time

Tags

CCSS.7.RP.A.3

True of False:  Before you can calculate INTEREST your time must be in MONTHS!

• FALSE
• TRUE

Tags

CCSS.7.RP.A.3

What does annually mean?

• yearly

• monthly

• quarterly

• bi weekly

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• divide the months by 12
• multiply 12 times the months
• change the months to a decimal

Tags

CCSS.7.RP.A.3

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.

• The amount of time that has passed.

• The total amount of money earned after a certain amount of time.

• The amount required to invest.