Calculating Simple Interest: Key Concepts and Applications

The video tutorial explains how to use the simple interest formula to solve various problems. It covers examples involving calculating interest earned, determining the time required for a certain interest amount, and finding the interest rate. The video also introduces an algebra course available on Udemy, detailing its content and structure.

What is the formula for calculating simple interest?

• I = P + RT

• I = PRT

• I = P / RT

• I = P - RT

How much total interest did John earn over five years?

• $1,500

• $1,750

• $2,000

• $2,250

What is the principal amount in the context of simple interest?

• The total interest earned

• The initial amount of money invested

• The total amount after interest

• The annual interest rate

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

• Rate of change

• Return on investment

• Annual interest rate

• Revenue

In the simple interest formula, what does 'T' stand for?

• Tax rate

• Transaction fee

• Time in years

• Total amount

How is the decimal form of a percentage calculated?

• Divide by 10

• Divide by 100

• Multiply by 100

• Multiply by 10

What is the total value of John's savings account after 5 years?

• $6,750

• $6,500

• $6,250

• $6,000

How many years will it take for Sally to earn $4,872 in interest?

• 8 years

• 7 years

• 5 years

• 6 years

What was the annual interest rate for Mary's investment?

• 8.4%

• 7.4%

• 6.4%

• 5.4%

How long will it take for James' account to reach $43,000?

• 7 years

• 8 years

• 9 years

• 10 years