Simple & Compound Interest

I = Prt where r represents the rate.  Rates must be converted into ____ before multiplying.

• fractions
• mixed numbers
• decimals

What is 7.25% converted to a decimal?

• .725
• 0.725
• 0.0725
• 7.25

Principal = $800
Interest Rate = 3.5%
Time = 6 months
Find the simple interest earned.

I = P × r × t

• 14
• 140
• 168
• 16.80

Principal = $800
Interest Rate = 3.5%
Time = 6 months
Find the simple interest earned.

• 14
• 140
• 168
• 16.80

Find the compound interest:
Principal: $1735
Interest Rate: 0.8%
Time: 1 year

• $1,388
• $138.80
• $13.88
• None of the answers are correct.

Which type of interest builds upon the interest and grows the fastest?

• Compound Interest

• Simple Interest

• Hobbies

Which type of interest will credit card companies and banks charge you on money you own (debt)?

• Simple Interest

• Compound Interest

• Hobbies