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Task 3: Unit 2: Lesson 3 Simple Interest

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Test your knowledge on simple interest word problems using I=PRT!

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Task 3: Unit 2: Lesson 3 Simple InterestVersión en línea

Test your knowledge on simple interest word problems using I=PRT!

por Kristine Vester
1

What does the 'P' in the formula I=PRT represent?

2

In the formula I=PRT, what does 'R' stand for?

3

If you invest $500 at a 5% interest rate for 3 years, what is the interest earned? I=PRT

4

If the principal is $1,000, rate is 4%, and time is 2 years, what is the interest? I=PRT

5

If the interest earned is $450, the principal is $1,500, and the rate is 3%, what is the time period?

6

Which of the following is NOT a component of the simple interest formula?

7

What do you earn when you have money in a Savings Account?

8

Who pays interest when borrowing money?

9

Why do banks pay interest on Savings Accounts?

10

What happens when you borrow money?

11

What type of account typically earns interest?

12

What is interest?

13

What does maturity refer to in a loan?

14

What is the principal in a loan?

15

How is simple interest calculated?

16

What is the relationship between risk and interest rates?

17

What must be paid back at maturity?

18

What type of interest is calculated only on the principal?

19

What does a higher interest rate indicate?

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