Simple Interest
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by Helene Rush
| 8 Questions
1
20
The formula for simple Interest is ...
I = P + r + t
Interest is equal to Principal minus Rate minus time. (I= P- R - T)
I = Pr / t
Interest is equal to Principal times rate times time. (I = P x R x T)

2
20
The P in the Interest formula represents the money that you end up with after interest is calculated.
True
False
3
20
Though the rate in the Interest formula is presented as a percentage, it must always be calculated as a/(an)
4
10
Robert places \$500.00 in the bank for 5 years at a rate of 12%. How much interest will he earn at the end of the five years?
5
1
A bank is offering 2.5% simple interest on a savings account. If you deposit \$5000, how much interest will you earn in one year?
6
1
Part A: To buy a car, Jessica borrowed \$15,000 for 3 years at an annual simple interest rate of 9%. How much interest will she pay after thee years?
\$405,000
\$4,050
\$40,500
7
1
Part B: To buy a car, Jessica borrowed \$15,000 for 3 years at an annual simple interest rate of 9%. What is the total amount that she will repay?
8
1
Johnâ€™s parents deposited \$1000 into a savings account as a college fund when he was born. How much will John have in this account after 18 years at a yearly simple interest rate of 3.25%?