Calculating Simple Interest and Percentages

This video tutorial covers the application of percents, including percent proportion, increases, decreases, and commission. It introduces simple interest, explaining the formula I = PRT, where I is interest, P is principal, R is rate, and T is time. The tutorial provides examples of converting percents to decimals and calculating simple interest. It also includes a practical example of calculating the total cost of a meal with a tip.

What is the first step in understanding percents?

• Learning to convert them into decimals

• Memorizing the simple interest formula

• Knowing how to calculate a percentage of a number

• Understanding their application in real life

What is a commission?

• A percentage earned from sales

• A type of discount

• A fixed salary

• A form of simple interest

What leads to a decrease in the original price?

• Interest

• Discount

• Commission

• Markup

What is the effect of a rebate on the original price?

• Converts the price into a percentage

• Increases the price

• No effect on the price

• Decreases the price

What does the 'P' in the simple interest formula represent?

• Principal amount

• Profit earned

• Percentage rate

• Payment total

How do you convert a percent to a decimal?

• Move the decimal point two places to the left

• Move the decimal point two places to the right

• Multiply by 100

• Divide by 100

What is the interest earned on a $200 investment over 2 years at a 3% interest rate?

• $24

• $18

• $6

• $12

What does the 'R' in the simple interest formula stand for?

• Rate of interest as a decimal

• Return on investment

• Ratio of interest

• Revenue from investment

How much time, in years, does 'T' represent if the period is six months?

• 1

• 2

• 0.25

• 0.5

What is the total cost after adding a 14% tip to meals costing $32.75 and $39.88?

• $85.00

• $82.80

• $72.63

• $75.00