Simple Interest

What is the formula for simple interest?

• $A=\left(1+r\right)^t$

• $a^2+b^2=c^2$

• $I=\Pr t$

• $y=mx+b$

This is the formula for simple interest. What does the P stand for?

• principal
  

• interest

• rate (percent)

• time (in years)

This is the formula for simple interest. What does the I stand for?

• principal
  

• interest

• rate (percent)

• time (in years)

What is the principal for the problem?

• 4.5%

• 2 years

• 0.045

• $500

What is the rate for this problem?

• $2,800

• 6.25%

• 1 year

What must you do to the rate before you can plug it into the formula? (6.25%)

• divide it

• change it to a decimal

• add it

• subtract it

David invests $10,000 in a savings account that pays 3.5% simple interest. If David makes no withdrawals or deposits to the account, how much will be in the account after 7 years?

What is the right setup for the problem?

• 10000 = P x 0.035 x 7

• I = 10000 x 0.035 x 7

What would be the balance in the account represented by this table?

• $2,500

• $1,500

• $825.00

• $8,043.75

• $80.44

• $643.50

Travis invests $25,000 in a savings account that pays 2.75% simple interest. How much interest does he earn each year?

• $787.50

• $625.00

• $657.50

• 687.50