Elite Grade 7

What does the P in I =PRT mean?

• Power

• Principal

• Product

• Percent

The Principal and Interest are always___________.

• fraction
• decimal
• percent
• money

Question #5

In the formula I=P·R·T, what does r stand for in a loan?

A. Rate: the interest percentage you will pay on a loan

B. Ratio: the size of the interest interval compared to time

C. Return: how much money you end up earning

D. Reserves: how much money you have in the investment

• A

• B

• C

• D

9 months is how many years?

• .5
• .75
• .25

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $16

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

• 4
• 8
• 12
• 16

The Henley’s took out a new home loan for $195,000 at a simple interest rate of 4.3%. How much will they pay in interest after 30 years?

• $446,550

• $2515.50

• $25,155

• $251,550

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% simple interest, how much will she have in total in her account at the end of 10 years?

• $8700

• $38,700

• $870

• $3,870

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800
• $1,000
• $1,200
• $1,500

Find the amount when:

Principal = Rs 6400, rate = 6% p.a. and time = 2 years

• Rs.768

• Rs.7681

• Rs.786

• Rs.7168