Exploring Simple and Compound Interest Concepts

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

• Investment

• Interest

• Income

• Increment

What does 'P' represent in the context of simple interest?

• Payment

• Principal

• Percentage

• Profit

How is the interest rate converted from a percentage to a decimal?

• Multiply by 100

• Subtract 100

• Divide by 100

• Add 100

How is the interest rate ('R') expressed in calculations?

• As a percentage

• As a decimal or fraction

• As a whole number

• As an integer

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

• Total amount

• Time in years

• Transaction count

• Tax percentage

How should 18 months be converted for use in the simple interest formula?

• 1.5 years

• 18 years

• 0.18 years

• 1 year

In the example provided, what was the principal amount?

• $275

• $225

• $200

• $250

What was the calculated simple interest in the example?

• $28.50

• $30.00

• $31.75

• $29.25

For calculating the final balance, what operation is performed?

• Divide principal by interest

• Add interest to principal

• Multiply principal by interest

• Subtract interest from principal

What was the final balance calculated in the lesson?

• $138

• $164

• $585

• $369