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Simple Interest Calculations

Simple Interest Calculations

Assessment

Interactive Video

Mathematics, Business

6th - 9th Grade

Practice Problem

Hard

Created by

Mia Campbell

FREE Resource

The video tutorial explains how to calculate the total balance of an account after 36 months using simple interest. It begins by introducing the problem and the simple interest formula: I = P * R * T, where I is the interest, P is the principal, R is the rate as a decimal, and T is time in months. The tutorial demonstrates converting a 0.5% monthly interest rate to a decimal (0.005) and emphasizes the importance of matching the time unit with the rate. It then calculates the interest earned over 36 months, which is $270, and adds it to the principal of $1,500 to find the total balance of $1,770. The video concludes with a summary of the steps taken to solve the problem.

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6 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the principal amount deposited by the customer?

$1,500

$1,000

$2,500

$2,000

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the simple interest rate expressed as a decimal?

0.0005

0.05

0.5

0.005

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the 'T' represent in the simple interest formula I = P * R * T?

Time in months

Total balance

Total interest

Time in years

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much interest is earned over 36 months?

$150

$450

$300

$270

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the total balance after 36 months?

$2,000

$1,800

$1,770

$1,500

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT needed to calculate simple interest?

Principal amount

Interest rate

Time period

Account number

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