April 27 - Simple Interest

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

Write the percent as a decimal. 
4.3%

• 4.3

• .43

• .043

• 4300

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest would he owe at the end of that time?

• $800

• $1,000

• $1,200

• $1,500

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

• Principle

• Interest

• Time, in hours

• Time, in years

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

• fractions

• mixed numbers

• decimals

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back TOTAL (principal AND interest combined) in 2 years?

• $150

• $192

• $1350

• $1392

Calculate the interest. I = PRT,

Principal = $1000,

Rate = 6%,

Time = 2 years

• $100

• $120

• $180

• 1200

What is the simple interest formula?

• I=rt

• I=prt

• I=bh

• I=Bh

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