Solving Simple Interest Problems with I = PRT

This video tutorial explains how to solve simple interest word problems using the formula I = PRT. It covers the meaning of each variable in the formula and provides three examples: calculating simple interest, finding the principal, and determining the rate. The video also includes tips on converting percentages to decimals and vice versa.

What does the 'P' in the simple interest formula represent?

• Power

• Percentage

• Profit

• Principal

What is the correct formula for calculating simple interest?

• I = P + RT

• I = PRT

• I = P - RT

• I = P/R + T

What does the 'T' in the simple interest formula stand for?

• Total

• Term

• Time

• Transaction

How do you convert a percentage to a decimal for the formula?

• Move the decimal two places right

• Move the decimal two places left

• Multiply by 100

• Divide by 100

What is the simple interest earned on $500 at 6% over 3 years?

• $180

• $90

• $30

• $600

How is interest usually expressed in the simple interest formula?

• As a fraction

• As a decimal

• In dollars

• As a percentage

To solve for the principal when the interest, rate, and time are known, you must:

• Divide the interest by the product of rate and time

• Subtract the interest from the product of rate and time

• Multiply all known values

• Add the rate to the interest and then multiply by time

What is the principal amount if $178 of interest was earned in 2 years at a rate of 4%?

• $1780

• $8900

• $4450

• $2225

How do you find the rate when the principal, interest, and time are given?

• Divide interest by the product of principal and time

• Multiply principal, interest, and time

• Divide the product of principal and time by the interest

• Divide interest by the principal and then multiply by time

What is the rate if a principal of $8200 earned $3772 in interest over 4 years?

• 12.5%

• 8.5%

• 9.5%

• 11.5%