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EXERCISE 1 CH 3

Total questions: 25

Worksheet time: 1hrs 5mins

Name
Class
Date
1.

The simple interest formula is I=Prt. The P represents the principal. The principal is ___________________.

a)

the amount of money

b)

the percent interest for his year

c)

the rate

d)

the percent proportion

2.

Alexton the Skeleton borrowed $4,000 for 5 years at 6% simple interest rate to pay for his band equipment. How much interest is that?

a)

$800

b)

$1,000

c)

$1,200

d)

$1,500

3.

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

a)

$150

b)

$192

c)

$1350

d)

$1392

4.

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. What will the value of Jerry's account be after 5 years?

a)

$520,000

b)

$120,000

c)

$5,200

d)

$1,200

5.

Pennywise puts $300 in a bank account earning 4% interest. How much will he earn in interest in 1 year?

a)

4

b)

8

c)

12

d)

16

6.

Mr. Pham has $410,000 in a retirement account that earns 3.85% simple interest each year. Determine the amount earned each year by this investment.

a)

$15,785

b)

$157,850

c)

$425,785

7.
Maria borrowed $3,000 at a simple interest rate of 4% per year.  How much did she have to repay after 4 years?
a)
$480
b)
$3,480
c)
$4,800
d)
$7,800
8.
John put 14,000 Euros in an account at a simple interest rate of 1% per year.  How much interest will he get after 12 years?
a)
16,800 Euros
b)
168,000 Euros
c)
1,680 Euros
9.
Anna invested $2,500 at an annual rate of 5%.  How long will it take until Anna earns $1,125 in interest?
a)
5 years
b)
8 years
c)
10 years
d)
9 years
10.
Jack deposited $1,400 in his bank account.  After 3 years, the account earned $294 in interest.  Find the simple interest rate.
a)
5%
b)
8%
c)
7.25%
d)
7%
11.
If you are calculating the simple interest and you are given the time in months, how can you find the time in years?
a)
Add 12 to the months
b)
divide the months by 12
c)
multiply 12 times the months
d)
You cannot change it to months.
12.
The simple interest formula is I=Prt.  What does the t represent?
a)
Principle
b)
Interest
c)
Time, in hours
d)
Time, in years
13.
The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.
a)
fraction
b)
decimal
c)
ratio
d)
dollar amount
14.
Principal = $800
Interest Rate = 3.5%
Time = 2 years
Find the interest earned.
a)
56
b)
140
c)
168
d)
16.80
15.
Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% in simple interest. What will be his balance after 15 years?
a)
$270.75
b)
$745.75
c)
$2,707.50
d)
$846.80
16.
What does the "r" in the interest formula stand for?
a)
Principal
b)
Interest
c)
rate
d)
time
17.
9 months is how many years? Remember there are 12 months in a year. 
9/12 = x/100
Cross multiply and divide 
a)
.5
b)
.75
c)
.25
18.
Principal = $500
Interest earned in 4 years = $60.
Find the interest rate.
a)
1%
b)
2%
c)
3%
d)
4%
19.

Write the percent as a decimal.

4.3%

a)

4.3

b)

.43

c)

.043

d)

4300

20.

Find the simple interest paid on a loan of $1,500 at a rate of 19% 15 months.

a)

$356.25

b)

$427,500

c)

$4,275

d)

$285

21.

How much interest would you earn if you deposited $575 for 3 months at 2.88% simple interest?

a)

$4.14

b)

$4,968

c)

About $400

d)

$1,725

22.

Tyron Shipp borrows $800 from the local bank, at an annual rate of 6.85%. The loan period is 37 weeks. How much money will he have to pay back at the end of the loan?

a)

$894.64

b)

$864.52

c)

$848.27

d)

$838.99

23.
The amount of money either borrowed or deposited is called:
a)
Principal
b)
Investment
c)
Interest
d)
Debt
24.
The amount charged for the use of borrowed money is called:
a)
Deposit
b)
Interest
c)
Withdraw
d)
Total
25.
Convert 18 months to years. 
a)
18 Years
b)
1.5 Years
c)
.18 Years
d)
You cannot change it to years.