Mastering Simple Interest

What is the simple interest on $500 at a rate of 5% for 3 years?

• $150

• $50

• $75

• $100

If you earn $60 in simple interest on a principal of $400, what is the interest rate?

• 10%

• 15%

• 20%

• 5%

Calculate the time period if the simple interest is $100, the principal is $800, and the rate is 4%.

• 10 years

• 50 years

• 31.25 years

• 25 years

Using the formula for simple interest, calculate the interest earned on $1,000 at 6% for 2 years.

• $120

• $80

• $200

• $60

A loan of $1,200 is taken for 5 years at a simple interest rate of 3%. How much interest will be paid?

• $240

• $180

• $300

• $150

If the simple interest earned is $150 and the principal is $1,000, what is the interest rate?

• 10%

• 20%

• 5%

• 15%

Find the time period if the simple interest is $200, the principal is $1,500, and the rate is 5%.

• 4.00

• 6.00

• 7.50

• 5.33

What is the formula for calculating simple interest?

• Interest = Principal ÷ Rate × Time

• Interest = Principal + Rate + Time

• Interest = Rate × Time

• Interest = Principal × Rate × Time

If you invest $800 at a simple interest rate of 4% for 4 years, how much interest will you earn?

• $128

• $96

• $64

• $200

A person borrows $600 at a simple interest rate of 7% for how many years if the interest paid is $84?

• 2 years

• 1 year

• 3 years

• 5 years