Simple Interest

What is simple interest?

• The cost of borrowing money with compounding effects

• The process of exchanging currencies

• A type of interest that banks do not offer

• The benefit of investing money without taking into account compounding effects

Tags

CCSS.7.RP.A.3

Which of the following is NOT used to calculate simple interest?

• Principal

• Account number

• Time period

• Interest rate

Tags

CCSS.7.RP.A.3

What does the 'P' stand for in the simple interest formula?

• Profit

• Percentage

• Principal

• Payment

Tags

CCSS.8.EE.C.7B

How is the interest rate expressed in the simple interest formula?

• In percentage

• As a fraction

• As a decimal

• As a whole number

Tags

CCSS.7.RP.A.3

What symbol denotes the rate of interest?

• I

• P

• R

• T

What does the 'T' represent in the simple interest formula?

• Total amount

• Taxes

• Time

• Transaction

Tags

CCSS.HSF-IF.C.8B

If you borrow $10,000 at a rate of 6% for one year, how much simple interest will you pay?

• $6000

• $600

• $60

• $6,000

Tags

CCSS.7.RP.A.3

Which of the following is an example of a loan?

• Currency exchange

• Stock investment

• Education Loans

• Savings account

Tags

CCSS.4.NF.A.1

CCSS.5.NF.B.5B