Simple Interest

Mark invested PhP100,000 in a bank at 5% simple interest for 10 years. What do you call the amount invested?

• loan

• discount

• principal

• interest

Sheryl invested PhP50,000 at BDO for

 $10\ \frac{1}{2}$  % for 10 years. What is  $10\ \frac{1}{2}$  % in decimal?

• 10.5

• 1.05

• .105

• .0105

The simple interest formula is given by I=Prt. What does t stand for? Check all that apply.

• term

• time

• target

• tax

An individual or institution that borrows money. Check all that apply.

• debtor

• lender

• maker

• lessor

The amount composed of the principal and interest. Check all that apply.

• final amount

• future value

• maturity value

• final deposit

Which of the following formulas may be used in finding P if the interest, rate, and time are given?

•  $P=Irt$  

•  $P=\frac{rt}{I}$  

•  $P=\frac{I}{rt}$  

•  $P=\frac{It}{r}$  

Aeign borrowed $4,000 for 5 years at 6% simple interest for his property. How much is the interest for the amount borrowed?

• $800

• $1200

• $1000

• $1500

Carol borrows $1,200 from a bank with 8% simple interest per year. How much will she have to pay in 2 years?

• $150

• $192

• $1350

• $1392

Mr. Paredes investment an amount of money at 5% simple interest for 5 years. If the amount earns PhP25,000, how much is investment?

• PhP100,000

• PhP125,000

• PhP150,000

• PhP200,000

Jen puts $300 in a bank account earning 4% simple interest. How much will her money earn in 1 year?

• 4

• 6

• 12

• 16