Understanding Simple Interest

What does the 'P' in the simple interest formula represent?

• Profit earned

• Previous balance

• Principal amount

• Percentage rate

Tags

CCSS.7.RP.A.3

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

• As a decimal

• As a fraction

• As a percentage

• As a whole number

Tags

CCSS.7.RP.A.3

If you deposit $500 at an 8% interest rate for 10 years, what is the simple interest earned?

• $40

• $500

• $400

• $800

Tags

CCSS.7.RP.A.3

What is the total value of an account after earning $96 in interest on a $1200 deposit over 2 years?

• $2196

• $96

• $1200

• $1296

Tags

CCSS.7.RP.A.3

How much interest will a $4000 investment earn at 6% simple interest over 5 years?

• $1200

• $600

• $240

• $200

Tags

CCSS.7.RP.A.3

What is the total amount Deontay will pay for a $7500 loan over 6 years at a 5% interest rate?

• $7500

• $10250

• $8250

• $9750

Tags

CCSS.7.RP.A.3

If Adriana's account earned $693 in interest over 6 years, what was her initial deposit if the interest rate was 7%?

• $1650

• $2000

• $1000

• $1500

Tags

CCSS.7.RP.A.3

Kaylee borrows $700 from her dad with a 2% interest rate to be paid back in 24 months. How much interest does she pay?

• $14

• $28

• $70

• $56

Tags

CCSS.7.RP.A.3

If Angelina paid $7200 in interest on a loan over 8 years at a 3% rate, what was the principal amount of her loan?

• $25000

• $20000

• $30000

• $24000

Tags

CCSS.7.RP.A.3

What was Laura's simple interest rate if she earned $450 in interest on a $1000 deposit over 5 years?

• 4.5%

• 9%

• 7.5%

• 6%

Tags

CCSS.7.RP.A.3