Simple Interest Quiz

The interest rate needs to be converted into a decimal for it to be used in the simple interest formula.

6% as a decimal is

• 6

• 0.6

• 0.06

• 0.06

n in the simple interest formula represents the number of years that the money is invested/ borrowed for.

2 years and 9 months can be written as ____ years

• 2.9

• 2.75

• 0.29

• 29

The P in the simple interest formula stands for ____

Halle invested $4000 at a flat rate of 5% for 6 years.

How much interest did Halle earn on the investment?

• $12

• $120

• $1200

• $12000

Halle invested $4000 at a flat rate of 5% for 6 years.

The value of her investment at the end of the 6 years is?

• $2800

• $5200

• $4120

• $17000

Sophie invested $4000 at a flat rate of 7%. At the end of the term the amount of interest she earned was $2240.

For how many years was Sophie's money invested for?

• 8

• 0.255

• 0.125

• 12.5

The decimal of 0.075 converted to a decimal is

• 0.75%

• 7.5%

• 75%

• None of the above

Riley invested $12000 in an account that paid flat rate interest. At the end of 5 years he has earned $2430 in interest. The interest rate paid on the investment was

• 0.0675%

• 0.675%

• 6.75%

• 67.5%

Kelsey invested a sum of money at a flat rate of 8% for 4 years. At the end of the term she had earned $1920 in interest. How much did Kelsey invest?

• $60

• $600

• $6 000

• $60 000

 $I=P\times i\times n$  
In Australia the values of __ and __ are measured in $

• I and P

• I and i

• P and i

• None of the above