Simple Interest Practice

Front

What does the 't' represent in the simple interest formula I=Prt?

Back

Time

Front

Calculate the interest earned if Principal = $500, Interest rate = 5%, Time = 5 years.

Back

$125

Front

How can you find the time in years if given the time in months for simple interest calculation?

Back

Divide the months by 12.

Front

Convert 18 months to years.

Back

1.5 Years

Front

If Olivia spends $7400 on furniture with 9.5% simple interest for 8 years, how much will she pay in total?

Back

$13,024

Front

What is the formula for calculating simple interest?

Back

I = Prt, where I is interest, P is principal, r is rate, and t is time.

Front

What is the principal in a simple interest calculation?

Back

The initial amount of money borrowed or invested.

Front

What does the interest rate represent in simple interest?

Back

The percentage of the principal charged as interest per time period.

Front

If the interest earned is $200, the principal is $1000, and the time is 2 years, what is the interest rate?

Back

10%.

Front

How do you convert an interest rate from a percentage to a decimal?

Back

Divide the percentage by 100.