Simple & Compound Interest

Front

The principle in the simple interest formula I=Prt

Back

the amount of money borrowed or deposited

Front

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

Back

compound ; highest

Front

How to find time in years from months for simple interest calculation? Options: divide 12 by the months, multiply 12 times the months, divide the months by 12, change the months to a decimal

Back

divide the months by 12

Front

What is the formula for simple interest?

Back

I=Prt

Front

In the formula I = Prt, where r represents the rate, rates must be converted into ____ before multiplying.

Back

decimals

Front

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

Back

12

Front

What does P stand for in I = Prt ?

Back

principal

Front

Actions to maximize interest in a savings account: selecting an account with a higher interest rate, leaving money in the account for a long period of time, transferring money into checking account each month, higher interest rate AND leaving money in for a longer time.

Back

higher interest rate AND leaving money in for a longer time

Front

How is time calculated in I = Prt?

Back

It must be in years.

Front

Smithville Bank offers 3.4% interest on new savings accounts. If Mr. Thomas opens an account with $1,500, how much interest will he earn in 3 years?

Back

$153