Simple Interest

What is the simple interest formula?

• I=P*R*T

• I=R*T

• R=I*P*T

• P=I*R*T

What does I in our formula (I=P*R*T) represent?

• Rate

• Original Amount

• Interest Paid

• Principal

If your interest rate is 3.5%, how should you write it in your formula?

• 35

• 3.5

• .35

• .035

Time (T) is the formula I=P*R*T is always written as __________.

• months

• weeks

• days

• years

What is 8.25% as a decimal?

• 82.5

• 8.25

• .825

• .0825

I=P*R*T

Solve for I when P = $100, R = 40% and T = 1 year.

• $4000

• $400

• $40

• $4

The amount of an original investment is also known as _________ (Choose all that apply).

• Principal

• Interest

• Borrowed Money

• Starting amount

How much interest does a $10,000 investment earn at 5.6% over 18 years?

• $1,008,000

• $10,080

• $10,800

• $1,008

Vivienne borrows $8650 to buy a car at 1.5% interest. How much interest will she pay after 5 years?

• $194,625.00

• $19,462.50

• $1,946.25

• $194.63

27.5%If Derrick paid $797.50 in interest on a 5 year loan of $5800, what was the interest rate?

• 275%

• 27.5%

• 2.75%

• .0275%