4/11 Simple Interest PRACTICE

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months
• multiply 12 times the months
• divide the months by 12
• change the months to a decimal

Tags

CCSS.7.RP.A.3

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Tags

CCSS.7.RP.A.3

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals
• integers

Tags

CCSS.7.RP.A.3

Ann puts $300 in a bank account earning 4% simple interest. How much will she earn in interest in 6 years?

• $24

• $372

• $72

• $720

Tags

CCSS.7.RP.A.3

John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions enable him to earn MORE interest?

• selecting an account with a higher interest rate
• leaving his money in the account for a long period of time
• transferring money into his checking account each month
• higher interest rate AND leaving money in for a longer time

Tags

CCSS.7.RP.A.3

What is important about how time is calculated in I= Prt ?

• it must be in months

• it must be in years

• it is not calculated

• it is written as a fraction

Tags

CCSS.7.RP.A.3

Smithville Bank is offering each of it's customers a record 3.4% simple interest on new savings account. If Thomas opens an account with $1,500, how much interest will he earn in 3 years?

• $15,300

• $1,530

• $153

• The answer is not shown

Tags

CCSS.7.RP.A.3

Find the simple interest earned given the scenario below:

Principal: $6,000

Interest rate: 5%

Time: 6 years

• $180

• $1,800

• $1,500

• $15,000

Tags

CCSS.7.RP.A.3

A simple interest account earns $75 at a rate of 1.5% over the course of 5 years. What was the principal amount on the account?

• $5

• $56

• $100

• $1,000

Tags

CCSS.7.RP.A.3

If Lana deposits $500 into a savings account that gains simple interest at a rate of 2% annually, how many years will it take for the account to gain $100 in interest?

• 8 years

• 9 years

• 10 years

• 11 years

Tags

CCSS.7.RP.A.3