Unit 4: Simple Interest & Commission

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays a simple interest rate of 3.8%. What will be the amount of interest earned after 15 years?

• $3182.50

• $270.75

• $2707.50

• $745.75

Emily’s parents put $1500 in her bank account for college tuition at a simple interest rate of 8.25%. What will be the balance after 18 years?

• $22,275

• $2227.50

• $12,375

• $3727.50

Jane received $875 from her graduation party. She put the money in a bank with a 4% simple interest rate. How much interest will she have earned after 7 years?

• $205

• $225

• $245

• $2,250

• $2,450

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $16

The simple interest formula is I=Prt.  What does the t represent?

• Principle
• Interest
• Time, in hours
• Time, in years

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

• Important
• Interest
• Internet
• Igloo

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

• Principal
• Interest
• rate
• time

Wilson Green sells home security systems. He earns an 11 percent commission on every system he sells. Wilson’s sales for this month totaled $4265. What is Wilson’s commission?

• $469.15

• $46,915

• $4,691.50

• $387.72

Derek sells appliances. He is paid a 6.5 percent commission on every appliance he sells. Derek sold $9,732.00 worth of appliances this week. What is Derek’s commission?

• $632.58

• $63.258

• $6,325.80

• $143.38

Randy gets fixed salary of $2000 per month and a commission of 2% on sales. If his total sales are $30,000 for the month, find his total salary for the month.

• $2,600

• $2,000

• $32,000

• $2,040