Simple Interest

by Helene Rush

| 8 Questions1

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%?

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