Cycle 1 Review

This is the formula for what type of interest?

• Compound Interest

• Simple Interest

This is the formula for what type of interest?

• Compound Interest

• Simple Interest

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

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

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 Principal and Interest are always___________.

• fraction
• decimal
• percent
• money

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120
• $144
• $1,200
• $1,440

What does r represent in the equation A=P(1+r)^t

• rate

• principal

• time

• amount

Caiden deposited $475 in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

• $827.52

• $831.10

• $839.45

• $846.80

In the compound interest formula A=P(1+r)^t what does the P stand for?

• The time

• The total amount

• The principal amount (original amount)

• The interest rate