Simple Interest and Single Percent

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

Christian opened a savings account with $3250. His account will earn 5.2% simple interest. How much money will be in his account after 6 years?

• $4,264.00

• $1,104.00

• $1,100.00

• $4,400.00

Alexis opened an account with $35. The account she opened earns simple interest at a rate of 8.6%. How much money will her account have in 4 years?

• $47.04

• $35.04

• $45.00

• $37.45

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

• Principle

• Interest

• Time, in hours

• Time, in years

Principal = $500
Interest rate =5%
Time = 5 years
What is the interest earned?

• 95

• 105

• 125

• 135

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120

• $144

• $1,200

• $1,440

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

• Principal

• Interest

• rate

• time

Luis deposits $4000 into a savings account paying 5% annual interest. What is the quarterly increase as a percent? (Round to the nearest TENTH)