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Simple Interest

Total questions: 15

Worksheet time: 35mins

Name
Class
Date
1.
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
2.
The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.  
a)
the amount of money borrowed or deposited
b)
the percent interest for his year
c)
the amount taxed
d)
the amount the bank owes you for being a customer at their bank
3.
Write the percent as a decimal. 
4.3%
a)
4.3
b)
.43
c)
.043
d)
4300
4.
Write the decimal as a percent. 
0.37
a)
37%
b)
3.7%
c)
.37%
5.
What does the "I" in the interest formula stand for?
a)
Important
b)
Interest
c)
Internet
d)
Igloo
6.
Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?
a)
$7.50
b)
$26.25
c)
$87.5
d)
$262.50
7.

Calculate the interest. I = PRT,

Principal = $1000,

Rate = 6%,

Time = 2 years

a)

$100

b)

$120

c)

$180

d)

1200

8.
Calculate the interest.  I = PRT,
Principal = $10000,
Rate = 7%,
Time = 20 years

a)
1400
b)
1000
c)
14000
d)
14
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.

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

11.

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

12.

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

13.
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%
14.
If the time is given in months, you must first _____________ by 12.
a)
add
b)
subtract
c)
multiply
d)
divide
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