Simple Interest Quiz 5

Principal = $350

Interest rate = 2.5%

Time = 3 years

How much interest will be earned?

• $7.50
• $26.25
• $87.5
• $262.50

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

• the amount of money borrowed or deposited in a savings account

• the percent interest for his year

• the amount taxed

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

Jenna borrowed $5,000 for 3 years and had to pay $1,350 simple interest at the end of that time. What rate of interest did she pay?

• 6%
• 6%
• 8%
• 9%

Maria borrowed $3,000 at a simple interest rate of 4% per year.  How much did she have to repay after 4 years?

• $480
• $3,480
• $4,800
• $7,800

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

• Principle
• Interest
• Time
• Percent Rate

Principal = $500

Interest earned in 4 years = $60

Find the interest rate.

• 1%
• 2%
• 3%
• 4%

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

• divide 12 by the months
• divide the months by 12
• multiply 12 times the months
• change the months to a decimal

Anna invested $2,500 at an annual rate of 5%.  How long will it take until Anna earns $1,125 in interest?

• 5 years
• 8 years
• 10 years
• 9 years

Mr. Peterson paid $1,020 in interest for a loan, which was given to him at a rate of 5% for 3 years.  How much money did he borrow originally?

• $5,400
• $6,800
• $3,240
• $14,620

The principal and interest are always:

• fraction
• decimal
• percent
• money