Simple Interest and Present Value Quiz

What is the formula used to calculate the future value in simple interest?

• A = P(1 - rt)

• A = P + rt

• A = P(1 + rt)

• A = P(rt)

If you want a future value of $5000 at a 12.5% interest rate over 13 weeks, what is the principal you need to invest?

• $4848.48

• $4500

• $5000

• $5200

How do you convert a percentage to a decimal for use in the simple interest formula?

• Move the decimal point one place to the right

• Move the decimal point two places to the left

• Move the decimal point one place to the left

• Move the decimal point two places to the right

In the context of simple interest, if the principal is $2600 and the future value is $2746.25 after 9 months, what is the interest rate?

• 5.5%

• 8.5%

• 6.5%

• 7.5%

When solving for the interest rate in simple interest, what is the final step after finding the decimal value?

• Multiply by 100 to convert to a percentage

• Subtract 100 to convert to a percentage

• Divide by 100 to convert to a percentage

• Add 100 to convert to a percentage