Simple and Compound Interest Word Problems

Front

interest is _________

Back

extra money paid for borrowing

Front

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

Back

$14

Front

Write the percent as a decimal. 
4.3%

Back

.043

Front

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

Back

the amount of money borrowed or deposited

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

What is the formula for calculating simple interest?

Back

I = Prt (Interest = Principal x Rate x Time)

Front

If you invest $500 at an interest rate of 4% for 2 years, how much interest will you earn?

Back

$40

Front

Convert 7.5% to a decimal.

Back

.075

Front

What does 'P' stand for in the simple interest formula I=Prt?

Back

Principal (the initial amount of money)

Front

If the interest earned is $20, the principal is $400, and the time is 1 year, what is the interest rate?

Back

10%