Exploring Simple Interest Concepts

How do you convert a percentage to a decimal?

• Divide by 100

• Subtract 0.01

• Add 0.01

• Multiply by 100

How do you convert a decimal to a percentage?

• Add 0.01

• Divide by 100

• Multiply by 100

• Subtract 0.01

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

• Profit

• Principal

• Percentage

• Payment

If you invest $600 at a rate of 5% for 3 years, how much interest do you earn?

• $300

• $30

• $90

• $180

What is the correct formula for calculating simple interest?

• I = P * R * T

• I = P / (R * T)

• I = P - R - T

• I = P + R + T

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

• Return

• Reduction

• Rate

• Ratio

What does the 'T' in the simple interest formula represent?

• Transaction

• Time

• Term

• Total

If $1200 is invested at a rate of 7.9% for 2 years, what is the interest earned?

• $237.00

• $189.60

• $150.48

• $94.80

What is the total amount paid for a car purchased at $8500 with a 2.2% interest rate over 7 years?

• $9809

• $9500

• $10200

• $10010

For an investment of $12250 at 3.4% interest over 12 years, what is the total value after the term?

• $17248

• $16750

• $17000

• $17498