Simple Interest

Which of the following is the formula for Simple Interest?

• A = P(1+r)^t

• I = Prt

• P = Irt

• a² + b² = c²

Larry put $1,280 into a savings account 5 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals.

Do we know the amount of interest?

• Yes

• No

Larry put $1,280 into a savings account 5 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals.

What is the Principle (P)?

• 4%

• 4/100

• $1280

• 5 years

Larry put $1,280 into a savings account 5 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals.

What is the rate (r)?

• 
  4%

• 4/100

• $1280

• 5 years

Larry put $1,280 into a savings account 5 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals.

What is the time (t)?

• 3 years

• 4 years

• 5 years

• 6 years

Larry put $1,280 into a savings account 5 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals.

How much interest will Larry earn at the end of 5 years?

Larry put $1,280 into a savings account 5 years ago. The account earned 4% simple annual interest. He made no additional deposits or withdrawals.

What will be Larry's total balance after 5 years?

A business owner invested $10,500 into an account that pays 1.2% annual simple interest. No additional deposits or withdrawals will be made.

Which amount is closest to the interest earned on the account at the end of 4 years?

• $504

• $11,004

• $126

• $10,626

A deposit of $7,912 is made into a new account that earns 5.75% simple interest. No additional deposits or withdrawals will be made for 2 years.

Which amount is closest to the balance in the account at the end of 2 years?

• $9,732

• $7,924

• $8,822

• $8,848

Elliot is taking out an $8,000 loan to help pay for his college education. He has two options. He can get a 5-year loan with 4.5% simple interest, or he can get a 7-year loan with 6% simple interest.

How much will Elliot owe in interest for the 5-year loan?