Savings

If you are calculating the simple interest and you are given the time in months.  How can you find the time in years?

• divide 12 by the months

• multiply 12 times the months

• divide the months by 12

• change the months to a decimal

. What is the formula for simple interest?

• A=P(1+r)^t

• I=Prt

• A=Prt

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

• 4

• 8

• 12

• 16

 Smithville Bank is offering each of it's customers a record 3.4% interest on new savings account. If Mr. Thomas opens an account with 1,500euro, how much interest will he earn in 3 years

• 15,300euro

• 1,530euro

• 153euro

• The answer is not shown

 Find the simple interest:

Principal: $6,000

Interest Rate: 5%

Time: 6 months

• $150

• $1,800

• $1,500

• $15,000

When we refer to our savings we mean that part of our income that we choose not to _____.

Describe the term Investing

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

• the amount of money borrowed or deposited

• the amount taxed

• the percent interest for this year

• the amount the bank owes you for being a customer at their bank