Interest is equal to Principal minus Rate minus time.

I = Pr / t

Interest is equal to Principal times rate times time.

2

20

The P in the Interest formula represents the money that you end up with after interest is calculated.

True

False

3

20

If the time for the interest period is less than 1 year ...

You must divide the number of months by 12.

You must add 12 to the number of months.

You must multiply the number of months by 12.

You must subtract the number of months from 12.

4

20

Though the rate in the Interest formula is presented as a percentage, it must always be calculated as a/(an)

5

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?

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