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Questions and Answers
What is the simple interest earned on a principal of $250 at an interest rate of 2.85% over 3 years?
What is the simple interest earned on a principal of $250 at an interest rate of 2.85% over 3 years?
- $24.75
- $12.00
- $18.90
- $21.38 (correct)
How much simple interest is earned on a principal of $1,000 at a 7% interest rate over 2 years?
How much simple interest is earned on a principal of $1,000 at a 7% interest rate over 2 years?
- $100
- $120
- $140 (correct)
- $70
For a principal of $2,700 at an interest rate of 8.2% over 3 months, which measurement is needed to calculate simple interest?
For a principal of $2,700 at an interest rate of 8.2% over 3 months, which measurement is needed to calculate simple interest?
- Use the final amount
- Add the interest to the principal
- Double the interest rate
- Convert months to years (correct)
What is the method to calculate simple interest?
What is the method to calculate simple interest?
Which of the following factors affects the calculation of simple interest?
Which of the following factors affects the calculation of simple interest?
Flashcards
Principal
Principal
The amount of money you initially invest or borrow.
Interest Rate
Interest Rate
The percentage rate that determines how much interest is earned or charged on the principal.
Time
Time
The length of time for which interest is calculated.
Simple Interest
Simple Interest
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Simple Interest Formula
Simple Interest Formula
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