GR 8 simple interest

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

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

What does the "I" in the interest formula stand for?

• Principal
• Interest
• Rate
• Time

What does the "p" in the interest formula stand for?

• Principal
• Interest
• rate
• time

What does the "r" in the interest formula stand for?

• Principal
• Interest
• rate
• time

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

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

Write the percent as a decimal. 
5%

• 5
• .5
• .05
• 500

Write the percent as a decimal. 
3.25%

• .0325
• .325
• 3250
• 32.5

Tina invested $2,000 in a simple interest account and earned 8% rate for 5 years. What is the interest that she earned on the account?

• $160

• $800

• $80,000

• $16

Emilio borrows $1200 from a bank with 8.5% simple interest per year. How much will he have to pay back total in 2 years?

• $204

• $996

• $1,020

• $1,404