Simple Interest Lesson

What is the price a person pays for borrowing money?

• Principal

• Time

• Rate

• Interest

Tags

CCSS.7.RP.A.3

What are the two types of interest?

• Borrowing interest and lending interest

• House interest and car interest

• Principal interest and rate interest

• Simple interest and compound interest

Tags

CCSS.7.RP.A.3

How do you calculate simple interest?

• Principal - Rate - Time

• Principal + Rate + Time

• Principal / Rate / Time

• Principal * Rate * Time

Tags

CCSS.7.RP.A.3

If you lend your friend $100 at 15% for 3 years, how much do you earn on this loan?

• $45

• $30

• $60

• $15

Tags

CCSS.7.RP.A.3

What is the formula for calculating simple interest?

• I = P/T

• P = IR

• I = PRT

• P = IRT

Tags

CCSS.8.EE.C.7B

What is the principal in a loan?

• The amount of money borrowed or invested

• The interest rate

• The time period

• The amount of money to be repaid

Tags

CCSS.7.RP.A.3

In the formula for simple interest, time must be measured in...

• days

• months

• weeks

• years

Tags

CCSS.6.EE.B.7

If you invest $200 at an annual interest rate of 5% for 2 years, how much simple interest will you earn?

• $10

• $20

• $30

• $40

Tags

CCSS.7.RP.A.3

Mr. Wolski borrowed $24,000 from the bank to buy a new car. If the interest rate is 6.5% and he borrows the money for 5 years, how much will he pay interest?

• $7,800

• $78,000

• $780,000

Tags

CCSS.7.RP.A.3

Mrs. Boucher put $750 into a savings account. The account pays 2% simple interest each year. If she neither adds nor withdraws money from the account, how much interest will she earn after 6 months? TIP: remember to put the time in years so, 6 months out of 12...

• $7.5

• $75

• $90

• $9,000

Tags

CCSS.7.RP.A.3