AMDM: Simple Interest Review

What does the P stand for in the simple interest equation?

• Proportion

• Principal

• Percent

• Pension

Tags

CCSS.HSA.SSE.A.1

What does the r stand for in the simple interest equation?

• revenue

• Reciprocal

• Randomization

• Rate

Tags

CCSS.HSA.SSE.A.1

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

• $3480

• $4,800

• $480

• $7,800

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $10,000

• $800

• $8000

• $2800

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.4

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Mark is comparing loan options to buy a new car. He will be borrowing $20,000. Which loan will cost him the least amount of money?

• 4.5% simple interest for 4 years.

• 4.75% simple interest for 3.5 years

• 3.5% simple interest for 5 years

• 4% simple interest for 4.5 years

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

Sort the definition or description into the correct category. (2 in each column)

Groups:

(a) Interest

,

(b) Principal

,

(c) Rate

,

(d) Time

• the cost of a loan

• If given in months, divide by 12

• amount borrowed or loan amount

• amount invested or deposited

• Amount earned

• Must be converted to a decimal

• percentage

• Must be in years

In the simple interest formula, time must always be in​ (a)   . If time is given in months, you must​ (b)  

• years
• months
• divide the months by 12
• divide the years by 12
• multiply the months by 12
• days

Match the percentage with its decimal equivalent.

• 0.125

• 12.5%

• 0.0125

• 1.25%

• 0.25

• 25%

• 0.02

• 20%

• 0.2

• 2%

If the question gives you the BALANCE, you must​ (a)   the ​​ (b)   from the​ (c)   to get the ​ (d)   .

• subtract
• principal
• balance
• interest
• add
• multiply
• rate
• time

You invest $24,000 at 5.5%. How long will it take to earn $6,600 of interest?

• 7 years

• 50 years

• 72.7 years

• 5 years