Lesson 28 - LT 4.6 Simple Interest

What is the simple interest formula?

• I=rt
• I=prt
• I=bh
• I=Bh

The simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.

• the amount of money borrowed or saved (invested or deposited in an account)

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

Calculate the interest earned on a $4,500 savings account that earns 2.5% simple interest over three years.

• $338.00
• $33.80
• $33.75
• $337.50

Determine the simple interest earned:  p= $2000  r= 4.6%  t= 4 years

• $2370.00
• $348.00
• $2368.00
• $368.00

Rachel invested $2,700 in a savings account earning 7% simple interest. If she invests for 2 years, how much money will she have in total?

• $3,078

• $378

• $40,500

• $4536

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

You invest $500 at 4% rate and receive $60 in simple interest. How many years was it invested for?

• 1 year

• 2 years

• 3 years

• 4 years

Sam borrowed $4,500 for 2 years and had to pay $630 simple interest at the end of that time. What rate of interest did he pay?

• 6%

• 7%

• 8%

• 9%