Simple Interest Practice

What is the formula for Simple Interest?

• $I=p\times r\times t$

• $P=I\times r\times t$

• $I=p\times r$

• $change\div original$

Tags

CCSS.7.RP.A.3

What does the "I" stand for in the formula I=prt?

• Invested Amount

• Interest Rate

• Interest

• Initial Amount

Tags

CCSS.7.RP.A.3

What does the "p" represent in the formula I=prt?

• Product

• Percent

• Interest

• Original Amount Invested/Borrowed

Tags

CCSS.7.RP.A.3

What label does the "r" have in the formula I=prt?

• $

• %

• years

• months

Tags

CCSS.7.RP.A.3

What does the t have to be measured in in the formula I=prt?

• months

• years

• days

• minutes

Tags

CCSS.7.RP.A.3

What is the principal in the following situation?

Amaya plans to leave her savings account alone for the next 4 years. Her account currently has a $1500 balance and her interest rate is 18%.

• $1500

• 18%

• 4 years

• $1,080

Tags

CCSS.7.RP.A.3

What is the rate in the following situation?

Jeremy takes out a loan of $30,000 to pay for college. He has to pay the loan back in the next 8 years at an interest rate of 7%.

• $30,000

• 7%

• 8 years

• $16,800

Tags

CCSS.7.RP.A.3

What time would you use in the formula I=prt for the following situation? (Be careful)

Reyna inherits $50,000. She puts that money in a bank account that earns 8.5% interest, and doesn't touch the account for 42 months.

• 21 months

• 15,330 days

• 3.5 years

• 42 months

Tags

CCSS.7.RP.A.3

Reyna inherits $50,000. She puts that money in a bank account that earns 8.5% interest, and doesn't touch the account for 42 months. How munch interest will Reyna earn?

• $14,875

• $178,500

• $42,500

• $64,875

Tags

CCSS.7.RP.A.3

How much interest is earned over 15 years on an investment of $7,000 with an annual interest rate of 9.25%?

• $9,712.50

• $647.50

• $16,712.50

• $7,043.17

Tags

CCSS.7.RP.A.3