Simple Interest

To which two situations does interest apply?

• Your crush asks if you want their number.

• Borrowing Money

• Investing money

• Your favorite Influencer just got arrested.

Principle is the ____ of money that you borrowed or invested.

A loan is when...

• money is borrowed

• money is burned

• money is invested

• money is hoarded

Type question here including an (a)   ​ = (b)   ​x (c)   ​x (d)  

• Interest
• Principle
• Rate
• Time (in years)

How do we change a percent into a decimal value?

• Replace the % with a decimal

• Put the number over 100

• Abra Kadabra

• Move the decimal two places to the left.

The interest formula tells you the amount of extra that is earned or has to be paid back. However a borrower owes the principle PLUS the interest and an investor will earn the principle PLUS the interest. Choose YIn if you read this carefully.

• Dollar

• Pound

• YIn

• Ruble

Ann puts $300 in a bank account earning 4% interest.  How much will she earn in interest in 1 year?

• 4
• 8
• 12
• 16

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150
• $192
• $1350
• $1392

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

Ethan borrowed $2,190 for a new dirt bike. He will pay the money back in 3 years with a simple interest rate of 2.5%. How much interest will he pay?

• $164.25

• $172.75

• $1,642.50

• $1,727.50

• $ 2,354.25