Exploring Simple Interest Concepts

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

• Percentage rate

• Profit gained

• Principal amount

• Payment period

How is the interest rate expressed in the simple interest formula?

• As an integer

• In decimal form

• As a fraction

• As a percentage

What is the correct formula for calculating simple interest?

• I = P + RT

• I = PRT

• I = PTR/100

• I = (P + R)T

If $580 is invested at a 3% interest rate for 5 years, how much simple interest is earned?

• $29

• $87

• $58

• $174

What is the simple interest earned on a 6-month investment of $580 at a 3% annual rate?

• $17.40

• $87.00

• $8.70

• $8.75

How much total interest does Randall pay on a $6,300 loan over 2 years at a 6% interest rate?

• $630

• $1,512

• $378

• $756

After interest, how much does Randall end up paying for his $6,300 car loan?

• $7,156

• $6,300

• $7,056

• $6,956

What is the simple interest rate for a loan of $5,000 that accrues $300 in interest over 2 years?

• 5%

• 6%

• 2.5%

• 3%

Maggie takes a student loan of $2,600 and pays $390 in interest over 3 years. What is her interest rate?

• 5%

• 6%

• 3%

• 4%

If Samantha pays $900 in interest on a $4,500 loan over 4 years, what is her interest rate?

• 6%

• 5%

• 3%

• 4%