Percent Proportion and Simple Interest

Emilio borrows $1200 from a bank with 8.5% simple interest per year. How much will he have to pay back total in 2 years?

• $204

• $996

• $1,020

• $1,404

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.  What does the t represent?

• Principle

• Interest

• Time, in hours

• Time, in years

Tina invested $2,000 in a simple interest account and earned 8% rate for 5 years. What is the interest that she earned on the account?

• $160

• $800

• $80,000

• $16

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

Ron is seeking a loan with a simple interest rate of 7% per year. He wants to borrow $4,500. How much will he be charged after 36 months?

(principal is the total amount borrowed) (time is in years, so convert 36 months to years)

• $5,445

• $9,450

• $11,340

• $945

John put 14,000 Euros in an account at a simple interest rate of 1% per year.  How much interest will he get after 12 years?

• 16,800 Euros

• 168,000 Euros

• 1,680 Euros

Jane deposited $22,000 at a bank that pays 10% interest. Bill deposited $16,000 at a bank that pays 16% interest. Who will receive more interest in a year, and by how much more?

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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

simple interest

• a fixed percent of the principal. It is found using the formula I=Prt, where P represents the principal, r the rate of interest, and t the time

• a percent change describing an increase in a quantity

• the initial amount of money borrowed or saved

• a percent change describing a decrease in a quantity