Simple Interest

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

• Principle

• Interest

• Time, in hours

• Time, in years

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

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

• Principal

• Interest

• Rate

• Time

Write the percent as a decimal 4.3%

• 4.3

• 0.43

• 0.043

• 4300

Write the percent as a decimal 3.25%

• 0.0325

• 0.325

• 3250

• 32.5

Write the percent as a decimal. 5%

• 5

• 0.5

• 0.05

• 500

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

True or False: Before you can calculate interest, your time must be in MONTHS!

• FALSE

• TRUE

9 months is how many years? Remember there are 12 months in a year. (Hint: divide the given number of months by the total)

• 0.5

• 0.75

• 0.25