Simple Interest Qld

In the simple interest formula what does the I stand for?

• Principal

• rate of interest

• Interest

• Time

In the simple interest formula what does the n stand for?

• Principal

• interest rate

• Interest

• Time

When given the rate of interest as a % first you must divide it by 10 to convert it to a decimal

• True

• False

Change 6% to a decimal

• 6

• 0.6

• 0.06

• 0.006

In the simple interest formula time must always be entered in years only

• True

• False

If the time of investment was 40 weeks then n should be entered as

• n = 40

• n = 0.4

• n = 40/12

• n = 40/52

If the time of investment was 9 months then n should be entered as

• n = 9

• n= 9/12

• n = 0.9

• n= 9/52

Jana borrowed $5000 at 7% p.a. for 3 years. The working for calculating the Interest charged for 3 years would be

• I = 5000 x 7%

• I = 5000 x 0.07 x 1

• I = 5000 x 0.07 x 3

• I = 5000x7x3

Jana borrowed $5000 at 7% p.a. for 3 years. Calculate the Interest charged on the loan.

• $350

• $1050

• $105 000

• $105

Jana borrowed $5000 at 7% p.a. for 3 years. How much would Jana have to pay back (Final Amount)

• $5350

• $6050

• $105 000

• $5105