Simple Interest

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

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

Write the percent as a decimal.

4.3%

• 4.3

• .43

• .043

• 4300

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

• Important

• Interest

• Internet

• Igloo

Starting money = $350.

Interest rate = 2.5%

TIme = 3 years.

How much interest?

• $7.50

• $26.25

• $87.5

• $262.50

Calculate the interest. I = PRT,

Principal = $1000,

Rate = 6%,

Time = 2 years

• $100

• $120

• $180

• 1200

Calculate the interest. I = PRT,

Principal = $10000,

Rate = 7%,

Time = 20 years

• 1400

• 1000

• 14000

• 14

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

• $800

• $1,000

• $1,200

• $1,500

You lend $240 to your friend. They pay you back $270. What interest rate did you charge your friend?

• 88%

• 20%

• 12.5%

• 10%

Review: Simplify the expression 15x - 50 + 30 - 30x

• 45x - 20

• 45x + 20

• -15x - 20

• 15x + 20