Simple Interest

What is the formula for simple interest?

• A = P(1+r)^t

• I = Prt

• S = Ph + 2B

• Y = Mx + B

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

• Important
• Interest
• Internet
• Igloo

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

• Principal
• Interest
• rate
• time

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

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

Determine the Simple Interest of the Problem below:

Principal = $500

Interest rate =5%

Time = 5 years

What is the interest earned?

• 95

• 105

• 125

• 135

Dan borrowed $2,000 from a bank at 12% annual simple interest rate. How much interest will he owe at the end of 1.5 years?

• $360

• $344

• $285

• $410

Emilio borrows $1200 from a bank with 8% simple interest per year. What will be the total amount of money he will have to pay back in 2 years?

• $150

• $192

• $1350

• $1392

Find the simple interest earned when you deposit $285 at and 8.5% rate for 6 years.

• $165.75

• $145.35

• $210.55

• $240.85

Sofia deposited $1,700 into a savings account that accumulates 1.8% interest. If she keeps the money in the account for 7 years, what will be the end balance of the account?

• $2,214.20

• $1,914.20

• $2,420.00

• $1,820.00