Exploring Simple Interest Concepts

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

• Principal

• Payment

• Profit

• Percentage

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

• Transaction

• Total

• Time

• Term

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

• Income

• Installment

• Increase

• Interest

How is the 'Rate' in the simple interest formula expressed?

• As a decimal

• As a whole number

• As a fraction

• As a percentage

In the simple interest formula, how should time be represented?

• In days

• In years

• In months

• In weeks

What is the purpose of converting the interest rate to a decimal in the simple interest formula?

• To decrease the value

• To simplify calculation

• To increase accuracy

• To comply with banking standards

What is the total interest earned in 5 years on a $580 deposit at a 3% interest rate?

• $58.00

• $870.00

• $87.00

• $8.70

How much interest is earned over 6 months on a $580 deposit at a 3% interest rate?

• $58.00

• $4.35

• $87.00

• $8.70

What is the simple interest on a $6,300 loan over 2 years at a 6.5% interest rate?

• $819.00

• $630.00

• $65.00

• $1,638.00

How much interest will be paid on a $6,300 loan over one month at a 6.5% interest rate?

• $6.50

• $65.00

• $819.00

• $34.13