Simple Interest

What is the formula for simple interest?

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

What does the P in I =PRT mean?

• Power

• Principal

• Product

• Percent

The Principal and Interest are always___________.

• fraction
• decimal
• percent
• money

Question #5

In the formula I=P·R·T, what does r stand for in a loan?

A. Rate: the interest percentage you will pay on a loan

B. Ratio: the size of the interest interval compared to time

C. Return: how much money you end up earning

D. Reserves: how much money you have in the investment

• A

• B

• C

• D

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

• Principle
• Interest
• Time, in hours
• Time, in years

Write the decimal as a percent. 
0.37

• 37%
• 3.7%
• .37%

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

9 months is how many years?

• .5
• .75
• .25

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

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120
• $144
• $1,200
• $1,440