Simple Interest & Review

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

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

• $800

• $1,000

• $1,200

• $1,500

Sam borrowed $4,500 for 2 years and had to pay $630 simple interest at the end of that time. What rate of interest did he pay?

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

• Time, in minutes

• Time, in months

• Time, in hours

• Time, in years

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

Calculate the PRINCIPAL. I = PRT,

Principal = ?

Interest= $120

Rate = 6%,

Time = 2 years

* Do not put commas in your answer

Cayden earned $475 from mowing lawns last summer. He deposited this money in an account that pays a simple interest rate of 4%. He earned $57 in interest . How many years will he invest his money to earn this amount of interest?

Kasen wanted to buy a 4-wheeler. He borrowed $4,000 for 7 months at 6.3% simple interest rate.

How much interest did he earn?

Mrs. Payne had 27 students in her class last year, and this year she had 30 students in her math class.

What is the percent of increase?

• 24%

• 20%

• 11%

• 50%

Carter sells medical supplies. He is paid a 6.5% commission on his sales. Carter sold $9,732.00 worth of medical supplies last week. What is Carters’ commission?

• $632.58

• $63,258.00

• $6,325.80

• none of these