Simple Interest

Principal = $500
Interest rate =5%
Time = 5 years
What is the interest earned?

• 95
• 105
• 125
• 135

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

• $120
• $144
• $1,200
• $1,440

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

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

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

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 money you borrow or invest is called __________?

• Simple Interest

• Rate

• Principal

• Time

Emilio borrows $1,200 from a bank at a rate of 8% per year. How much will he have to pay back in total after 2 years?

• $150

• $192

• $1350

• $1392

Find the simple interest earned when the principal is $500 at a rate of 10% held in the bank for 8 years.

• $300

• $540

• $500

• $400

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