#2 Simple Interest

Convert the percent to a decimal:

49%

Convert the percent to a decimal:

19.4%

Convert the percent to a decimal:

87%

Convert the percent to a decimal:

49%

Convert the percent to a decimal:

19.4%

Convert the percent to a decimal:

87%

Convert the percent to a decimal:

17%

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

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

• Principle
• Interest
• Time
• Percent Rate

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800

• $1,000

• $1,200

• $1,500