8.4 Simple Interest

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

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

• Principal
• Interest
• Rate
• Time

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

• Principal
• Interest
• rate
• time

Principal = $350

Interest rate = 2.5%

Time = 3 years

How much interest?

• $7.50

• $26.25

• $87.50

• $262.50

Julie borrowed $3,500 for 3 years at 7.5% simple interest rate. How much interest is accrued?

• $78,750

• $787.50

• $810

• $4,287.50

Drake went to the mall and saw a massage chair that he would have to take a loan out to purchase. The total of the loan was $6600. The bank said that he could get a simple interest rate of 8% for 5 years. What is the total amount that he will pay for the chair?

• $2600

• $924

• $9240

• $260

Emilio borrows $1200 from a bank with 8% simple interest rate. What will be the amount of interest after 2 years?

• $150

• $192

• $1350

• $1392

What does withdrawal mean?

• Subtract

• Add

• Multiply

• Divide

What does deposit mean?

• Subtract

• Add

• Multiply

• Divide

What do I type in DESMOS to find the total balance?

• prt + p

• prt + t

• prt

• prt - t