Simple and Compound Interest

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

• compound; lowest

• simple ; lowest

• compound ; highest

• simple ; highest

What is the formula for simple interest?

• A=P(1+r)^t

• I=P(1+r)^t

• I=Prt

• A=Prt

Tags

CCSS.7.RP.A.3

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

• Principle

• Interest

• Time

• Percent Rate

Tags

CCSS.8.EE.C.7B

What does the "I" in the interest formula stand for?

• Important
• Interest
• Internet
• Igloo

Tags

CCSS.7.EE.B.4A

The compound interest formula is:

A = P(1 + r)^t

What does the A represent?

• The amount of interest earned.

• The amount of time that has passed.

• The total amount of money after a certain amount of time.

• The amount required to invest.

Tags

CCSS.HSF-IF.C.8B

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction

• dollar amount

• ratio

• decimal

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

Tags

CCSS.7.NS.A.3

CCSS.7.RP.A.3

Change 6.75% to a decimal.

• 67.5
• .675
• 675
• .0675

Tags

CCSS.7.NS.A.2

CCSS.7.RP.A.3

the time has to be in _____________

• years

• months

• days

• seconds

Tags

CCSS.4.MD.A.1

The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.

• the amount of money borrowed or deposited

• the percent interest for his year

• the amount taxed

• the amount the bank owes you for being a customer at their bank

Tags

CCSS.8.EE.C.7B