Simple Interest

Assets are things you _________. They have positive cash values.

A credit card bill is a ________.

• liability

• fixed expense

• asset

• networth

Formula for simple Interest ​ (a)  

• I=PRT
• I=PT
• P=RTI
• I=Principle + Rate

Rob has $5,000. He deposits his money into a savings account at Town Bank which offers a 4.25% interest rate. If Rob does not make any deposits or withdrawals, how much simple interest will Rob's money earn after 6 months?

• $10,625

• $1275

• $106.25

• $127,500

The rate is given as a percent (%).  Before using it in the simple interest formula, you must first convert it to a______.

• fraction
• decimal
• ratio
• dollar amount

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% simple interest, how much will she have in total in her account at the end of 10 years?

• $8700

• $38,700

• $870

• $3,870

What does the "r" in the interest formula stand for?

• Principal
• Interest
• rate
• time

Write the percent as a decimal. 
3.25%

• .0325
• .325
• 3250
• 32.5