Simple Interest Activity

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

The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.

• the amount of money

• the percent interest for his year

• the rate

• the percent proportion

What is the simple interest formula?

• I = rt

• I = prt

• I = bh

• I = Bh

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $16

When Loofa was born, her parents put $8,000 into a college fund account that earned 9% simple interest. Find the amount of interest earned after 18 years.

• $720

• $20,960

• $1,080

• $12,960

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back TOTAL (principal AND interest combined) in 2 years?

• $150

• $192

• $1,350

• $1,392

Sarah borrowed $18,000 for 4 years at an annual simple interest rate of 7%.  What is the total amount she will repay for the car loan?

• $504,000

• $5,040

• $23,040

• $18,000

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?

• Principal

• Time, in hours

• Interest

• Time, in years

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

• Principal

• Rate

• Time

• Interest