Simple Interest Concepts and Calculations

The video tutorial explains how to calculate simple interest using the simple interest equation. It begins with an introduction to the concept and a review of percent change, including conversions between percent and decimal. Key vocabulary such as principal, rate, interest, and time are introduced. The tutorial then applies the percent change equation to calculate interest, providing an example with Tim's savings account. It discusses the impact of varying principal amounts and time periods on interest and final amounts, highlighting the proportional relationship. The lesson concludes with a summary of the simple interest calculation process.

What is the annual simple interest rate on Tim's savings account?

• 2%

• 3%

• 4%

• 5%

How do you calculate percent change?

• Original plus final divided by final

• Original minus final divided by final

• Final plus original divided by original

• Final minus original divided by original

What is the correct way to convert a percentage to a decimal?

• Move the decimal one place to the right

• Move the decimal two places to the left

• Move the decimal one place to the left

• Move the decimal two places to the right

Which term refers to the amount invested or borrowed?

• Time

• Principal

• Rate

• Interest

How is the interest calculated in the simple interest formula?

• Principal times rate

• Rate divided by principal

• Principal plus rate

• Principal minus rate

If Tim's principal is $100 and the rate is 3%, what is the interest earned in a year?

• $2

• $5

• $3

• $4

What would be the final amount in Tim's account after a year?

• $103

• $102

• $101

• $100

What happens to the interest if the principal amount increases?

• Interest increases

• Interest remains the same

• Interest becomes zero

• Interest decreases

How does the interest change if the time period is extended?

• Interest becomes zero

• Interest increases

• Interest remains constant

• Interest decreases

What kind of graph represents the relationship between interest and principal?

• A curved line

• A straight line through the origin

• A horizontal line

• A vertical line