Finding Simple Interest

The video tutorial explains how to calculate simple interest using the formula: Interest equals principal times rate times time. It presents a problem where Paloma deposits $750 in a savings account with a 2% annual interest rate. The tutorial guides viewers through calculating the interest earned over one year and determining the total amount in the account. The solution involves converting the interest rate to a decimal, multiplying by the principal and time, and adding the interest to the initial deposit to find the total amount.

What is the principal amount that Paloma deposited into her savings account?

• $500

• $750

• $1500

• $1000

Which of the following represents the simple interest formula?

• Interest = Principal - Rate - Time

• Interest = Principal + Rate + Time

• Interest = Principal / Rate / Time

• Interest = Principal x Rate x Time

How should the interest rate of 2% be expressed as a decimal for calculations?

• 0.002

• 0.02

• 0.2

• 2.0

What is the amount of interest Paloma earns after one year?

• $25

• $20

• $15

• $10

What is the total amount in Paloma's account after one year, including interest?

• $770

• $765

• $760

• $750