Calculate Interest

Calculate the interest. I = PRT,

Principal = $1000,

Rate = 6%,

Time = 2 years

• $100

• $120

• $180

• 1200

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

• the amount of money borrowed or saved (invested or deposited in an account)

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

Sam borrowed $4,500 for 2 years and had to pay $630 simple interest at the end of that time. What rate of interest did he pay?

• 6%

• 7%

• 8%

• 9%

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions

• mixed numbers

• decimals

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

• Principle

• Interest

• Time, in hours

• Time, in years

Dan borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back IN TOTAL after 2 years?

• $150

• $1350

• $192

• $1392

Howard borrowed $4,000 from the bank at an interest rate of 8%. He has to pay it back in 2 years. How much interest will he pay?

• $640

• $64

• $74

• $460

Maria borrowed $3,000 at a simple interest rate of 4% per year.  How much did she have to repay after 4 years?

• $480

• $3,480

• $4,800

• $7,800

If you wish to calculate the amount of interest earned on an investment with a rate of 6.17%, what number will you plug into your equation for the rate?

• A. 0.00617

• B. 0.0617

• C. 0.617

• D. 6.17

The simple interest formula is I=PRT.  What does the T represent?

• Principal

• Time, in hours

• Interest

• Time, in years