Simple Interest In-class review

What does the I in I = PRT mean?

• invest

• interest

• ice cream

• internal

What is the interest earned on a savings account over 2 years, given a principal of $200 and a rate of 5%?

• $5

• $25

• $20

• $2

What does the R in I =PRT mean?

• rate

• real number

• recommend

• rounding

What does the P in I =PRT mean?

• Power

• Principal

• Product

• Percent

What does the T in I =PRT means?

• time

• kind of loan

• temperature

• multiplication

What is the interest on a savings account at a rate of 2%, given a starting amount of $575, over 1 year's time?

• $115

• $586.50

• $11.50

• $1.50

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

How much simple interest would be earned on a savings account of $4,500 at 5.5% interest per year after 24 months?

• $594,000

• $495

• $49,500

• $5,940

How to you calculate the balance of an account using the simple interest formula?

• Calculate the interest and add it to the principal

• Calculate the interest and subtract it from the principal

• Calculate the rate and add it to the interest

• Calculate the time and add it to the principal

Before I can calculate anything using the simple interest formula I must first ____________________

• Determine my interest

• Convert my rate to a decimal

• Determine my balance

• Call my financial advisor for help