Simple & Compound Interest

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________. 

• the amount of money borrowed or deposited
• the amount taxed
• the percent interest for this year
• the amount the bank owes you for being a customer at their bank

Tags

CCSS.7.RP.A.3

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

• compound; lowest
• simple ; lowest
• compound ; highest
• simple ; highest

Tags

CCSS.7.RP.A.3

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

Tags

CCSS.7.RP.A.3

What is the formula for simple interest?

• A=P(1+r)^t
• I=Prt
• I=P(1+r)t
• A=Prt

Tags

CCSS.8.EE.C.7B

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals
• integers

Tags

CCSS.7.RP.A.3

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

• $4

• $8

• $12

• $16

Tags

CCSS.7.RP.A.3

What is important about how time is calculated in I= Prt ?

• it must be in months
• it must be in years
• it is not calculated

Tags

CCSS.7.RP.A.3

Emilio invests $1200 in a bank with 8% simple interest per year. How much the future value will be in 2 years?

• $150

• $192

• $1350

• $1392

Tags

CCSS.7.RP.A.3

Emily's parents put $1,500 in her bank account for college tuition. At an interest rate of 8.25% compounded semi-annually, what will be the future value after 3 years?

• $2,273.50

• $1,514.08

• $2,040.23

• $1,911.71

Tags

CCSS.HSF-LE.A.1C

Semi-Annually means how many times a year?

• 4

• 2

• 1

• 6

Tags

CCSS.6.RP.A.3B