Simple Interest/ Financial Literacy

The formula to calculate simple interest is:

I = P x r x t

The "P" stands for :

• Payment: the amount needed to pay back after the loan period

• Period: the length of the loan

• Principle: the amount of money that is borrowed

• Payment: the amount the borrower needs to pay each month of the loan

Principal= ₱30,000

Rate of Interest=2.5%

Time=3 years

*Solve for the INTEREST.

REMINDERS:

1) Type your answers only.

2) No labels needed.

Find the simple interest paid on a loan of $750 with an 18% rate over 2 years.

• $135

• $13,500

• $270

• $27,000

Calculate the interest. I = PRT,

Principal = $1000,

Rate = 6%,

Time = 2 years

• $100

• $120

• $180

• 1200

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50
• $26.25
• $87.5
• $262.50

Write 0.37 as a percent (%)

• 37%

• .37%

• 3.7%

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

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

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

• Principal

• Rate

• Time

• Interest

Find the simple interest paid on a loan of $4,750 at a rate of 19.5% for 30 months.

• $5

• $2315.63

• $27,787.50

• $926.25