SIMPLE AND COMPOUND INTEREST 2.0

Front

The principle in the simple interest formula I=Prt is:

Back

the amount of money borrowed or deposited

Front

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Back

$1,200

Front

Julie borrowed $3,500 for 3 years at 7½% simple interest rate. How much interest is that?

Back

$787.50

Front

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

Back

12

Front

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

Back

1392

Front

The simple interest formula is I=Prt. What does the t represent?

Back

Time

Front

How to convert time in months to years for simple interest calculation?

Back

Divide the months by 12.

Front

Principal = $800
Interest Rate = 3.5%
Time = 6 months
Find the interest earned.

Back

14

Front

You lend $240 to your friend. He pays you back $30 in interest in one year. What interest rate did you charge your friend?

Back

12.5%

Front

Convert the rate given as a percent (%) to a ______ before using it in the simple interest formula.

Back

decimal