Simple Interest Review

Jane received $875 from her graduation party. She put the money in a bank with a 4% simple interest rate. How much interest will she have earned after 7 years?

• $205

• $225

• $245

• $2,250

• $2,450

Tags

CCSS.7.RP.A.3

City Bank offers a 4.75% simple interest rate, while First National offers 3.9%. If Tom wants to set up a new account with $500, how much more money will he earn in interest at City Bank over First National after 12 years?

• $45

• $48

• $51

• $55

• $59

Tags

CCSS.HSF.BF.A.2

Abby earned $600 this past summer babysitting. She decided to put this money in a bank that earns a 5% simple interest rate. How many years will it take to double her initial deposit?

• 10

• 12

• 15

• 18

• 20

Tags

CCSS.7.RP.A.3

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

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

Tags

CCSS.7.RP.A.3

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

Tags

CCSS.7.RP.A.3

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time
• Percent Rate

Tags

CCSS.8.EE.C.7B

What is 7.25% converted to a decimal?

• .725
• 0.725
• 0.0725
• 7.25

What does the I in I = PRT mean?

• invest

• interest

• ice cream

• internal

Tags

CCSS.7.RP.A.3

What is the interest earned on a savings account over 2 years, given a principal of $200 and a rate of 5%?

• $5

• $25

• $20

• $2

Tags

CCSS.7.RP.A.3

How do you change a percent into a decimal?

• Divide by 100

• Move the decimal twice to the left

• Move the decimal to the right

• Remove the % symbol