Calculate Interest Rate

What is the formula for simple interest?

• P(1+r)^t

• Prt

• (1+r)t

• Prt

Calculate the Simple Interest:

Principle : $350

Interest Rate : 2.5%

Time : 3 years

• $7.50

• $26.25

• $87.50

• $262.50

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest would he owe at the end of that time?

• $800

• $1,000

• $1,200

• $1,500

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

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

• $120

• $144

• $1,200

• $1,440

Julie borrowed $3,500 for 3 years at 7½% simple interest rate. 
How much interest is that?

• Julie borrowed $3,500 for 3 years at 7½% simple interest rate. 
  How much interest is that?

• $787.50

• $810

• $812.50

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

• $800

• $1,000

• $1,200

• $1,500

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that? Remember your time has to be in YEARS!!  6 months is half of a year or .5

• $120

• $144

• $1,200

• $1,440

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

• 95

• 105

• 125

• 135