Simple Interest

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

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

• the amount of money borrowed or deposited

• the percent interest for his year

• the amount taxed

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

Tags

CCSS.7.RP.A.3

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

• $1.20

• $12

• $40

• $120

Tags

CCSS.7.RP.A.3

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

• Add 12 to the months

• Divide the months by 12

• Multiply 12 times the months

• You cannot change it to months.

Tags

CCSS.7.RP.A.3

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

• Principle

• Temperature, in F

• Time, in hours

• Time, in years

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

• $120

• $144

• $1,200

• $1,440

Tags

CCSS.7.RP.A.3

Convert 18 months to years.

• 18 years

• 1.5 years

• 0.18 years

• You cannot change it to years.

Tags

CCSS.4.MD.A.1

Write the decimal as a percent.

0.37

• 37%

• 3.7%

• 0.37%

• 0.037%

• 3700%

Write the percent as a decimal.

4.3%

• 4.3

• 0.43

• 0.043

• 4300

The Principal and Interest are always ___________.

• fractions

• decimals

• percentages

• money