Simple Interest Quiz

What is the formula for calculating simple interest?

• I = R * T

• I = P * R * T

• I = P * R

• I = P * T

If the principal amount is $500, the interest rate is 5%, and the time period is 2 years, what is the simple interest?

• 250

• 50

• 100

• 10

Which of the following is an example of simple interest? a) Earning interest on a savings account b) Paying interest on a loan c) Investing in the stock market d) Renting a house

• a

• c

• b

• d

If the principal amount is $1000, the interest rate is 8%, and the time period is 3 years, what is the simple interest?

• 240

• 80

• 320

• 400

True or False: Simple interest is calculated based on the initial principal amount only.

• False

• True and final amount

• True and time period

• True

If the principal amount is $2000, the interest rate is 6%, and the time period is 5 years, what is the simple interest?

• 900

• 300

• 600

• 100

Which of the following formulas is used to calculate simple interest? a) I = P * R * T b) I = P / R * T c) I = P + R + T d) I = P - R - T

• d

• b

• a

• c

If the principal amount is $1500, the interest rate is 10%, and the time period is 4 years, what is the simple interest?

• 400

• 600

• 800

• 100

True or False: Simple interest is always calculated annually.

• Simple interest is not calculated at all

• True

• Simple interest is only calculated monthly

• False

If the principal amount is $2500, the interest rate is 7%, and the time period is 6 years, what is the simple interest?

• 1500

• 1000

• 2000

• 1050