MAT112 [1: Simple Interest]

What is the interest?

(hint: two correct answers)

• Interest is money earned when money is invested.

• Interest is the sum of the original principal and the simple interest earned/charged

• Interest is the Original value of money that is invested or borrowed

• Interest is charge incurred when a loan or credit is obtained.

How is Simple Interest calculated?

(hint: three correct answers)

• Simple Interest is calculated by multiplying the principal amount, the interest rate, and the time period.

• S=P(1+rt)

The amount of money borrowed or invested on the origin date is the amount of ____?

(hint: one correct answer)

• Principal (P)

• Simple Interest

• Interest (I)

• Maturity Value or Future Value

Amil deposited RM1,400 which offered 5% simple interest rate per annum for 5 years 9 months. State the period in years.

(hint: one correct answer)

• 5.9

• RM1,400

• 5%

Given P is the principal of investment, r is the interest rate per annum, t is the time, What is the formula for the simple amount of the investment?

(hint: one correct answer)

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

(hint: one correct answer)

• It

• Interest

• the Headless Iron Man

• Ignoramus

Mr. Supi aims to have his investment grow to RM5000 in 4 years. how much should he invest in an account that pays 5%?

(hint: one correct answer)

• 4000

• 4166.67

• 4500

• 4200

A bank offers a 5% annual simple interest rate for a particular deposit. After a year RM2,500 will be earned from RM1 million deposited. What is the interest?

(hint: one correct answer)

• 2450

• 5050

• 2500

• 4500

Emili borrows RM1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

(hint: one correct answer)

• RM1500

• RM192

• RM1350

• RM1392

Ann puts RM300 in a bank account earning 4% interest. How much will she earn in interest in 17 months?

(hint: one correct answer)

• 4

• 8

• 17

• 204