Simple Interest Quiz

What is the formula for calculating simple interest?

• I = P + r + t

• I = P - r - t

• I = P / r / t

• I = P * r * t

If the principal amount is $500, the interest rate is 5%, and the time period is 2 years, what is the total interest earned?

• $75

• $25

• $100

• $50

If the total amount after 3 years is $1200 and the interest earned is $200, what is the principal amount?

• $800

• $1500

• $1800

• $1000

If the principal amount is $1000, the interest earned is $150, and the time period is 3 years, what is the interest rate?

• 10%

• 7%

• 5%

• 3%

If the principal amount is $800, the interest rate is 8%, and the total amount after 2 years is $864, what is the time period?

• 3 years

• 5 years

• 4 years

• 1 year