Simple Interest

What does the "I" in the interest formula stand for?

• Important

• Interest

• Internet

• Investment

What does the "p" in the interest formula stand for?

• Principal

• Percent

• rate

• time

What does the "r" in the interest formula stand for?

• Principal
• Interest
• rate
• time

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

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

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

• 95
• 105
• 125
• 135

What is the interest earned on a savings account over 2 years, given a principal of $200 and a rate of 5%?

• $5

• $25

• $20

• $2

What is the interest on a savings account at a rate of 2%, given a starting amount of $575, over 1 year's time?

• $115

• $586.50

• $11.50

• $1.50

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

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

• 4

• 8

• 12

• 16

Rachel invested $2,700 in a savings account earning 7% simple interest. If she invests for 2 years, how much money will she have in total?

• $3,078

• $378

• $40,500

• $4536