Simple Interest

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

• $3480

• $3,480
• $4,800
• $7,800

Marcus plans to deposit $20,000 into a savings account.

Bedford Bank offers a rate of 4% simple interest for five years. How much interest is earned?

• $2460

• $4000

• $5204

• $4094

What is the simple interest formula?

• I=rt
• I=prt
• I=bh
• I=Bh

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

• Principle
• Interest
• Time, in hours
• Time, in years

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

• $120
• $144
• $1,200
• $1,440

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays a simple interest rate of 3.8%. What will be the amount of interest earned after 15 years?

• $3182.50

• $270.75

• $2707.50

• $745.75

Emily’s parents put $1500 in her bank account for college tuition at a simple interest rate of 8.25%. What will be the interest after 18 years?

• $22,275

• $2,227.50

• $12,375

• $3727.50

The Henley’s took out a new home loan for $195,000 at a simple interest rate of 4.3%. How much will they pay in interest after 30 years?

• $446,550

• $2515.50

• $25,155

• $251,550

Twelve years ago, Claire deposited $1,800 in a savings account. It pays 2.5% simple interest. How much in interest did Claire earn in the account?

• $2,340

• $23,400

• $540

• $54

Shawn is buying a new jet ski for $12,500. His Credit Union offers 8.5% simple interest. How much interest will Shawn pay on his Jet Ski after 18 months?

• $1593.75

• $19,125

• $159,375

• $14,093.75