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Question 1 of 5
Robert deposits $ 20,000 $ 20,000 3 3 7 % 7 % 3 3
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Identify values from the problem.
Principal Value = P = $ 20,000 = P = $ 20,000
Interest Rate = r = 7 % per annum = 0.07 (as a decimal ) = r = 7 % per annum = 0.07 (as a decimal )
Time Elapsed = t = 3 = t = 3
Solve for the Simple Interest Earned
I I = = P P r r t t Simple Interest Formula
= = $ 20,000 $ 20,000 × × 0.07 0.07 × × 3 3 Substitute known values
= = $ 4,200 $ 4,200
Solve for the Total Amount
Total Amount
= = $ 20,000 + $ 4,200 $ 20,000 + $ 4,200
= = $ 24,200 $ 24,200
$ 24,200 $ 24,200
Question 2 of 5
Carrie deposits $ 2,000 $ 2,000 $ 450 $ 450
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Identify the given values
Principal Value = P = $ 2,000 = P = $ 2,000
Interest Earned = $ 450 = $ 450
Time Elapsed = t = 5 = t = 5
Rewrite the equation to find the interest rate
I I = = P P r r t t Simple Interest Formula
r r = = I P t I P t Divide both sides by P t P t
Solve for the Interest rate ( r ) , ( r ) ,
r r = = I P t I P t Formula for Interest Rate
= = 450 2,000 × 5 450 2,000 × 5 Plug in the known values
= = 0.045 0.045
= = 4.5 % 4.5 % Convert to percentage
Question 3 of 5
How much interest is earned on $ 500 $ 500 6 % 6 %
Incorrect
Labelling the given values
Interest= I = ? = I = ?
Principal Value= P = $ 500 = P = $ 500
Rate= r = 6 % = r = 6 %
Time Elapsed= t = 6 = t = 6
First, express the rate as a decimal
6 % = 0.06 6 % = 0.06
Solve for the Interest ( I ) , ( I ) ,
I I = = P r t P r t Simple Interest Formula
= = $ 500 × 0.06 × 6 $ 500 × 0.06 × 6 Plug in the known values
= = $ 180 $ 180
Question 4 of 5
What is the interest rate if a principal of $ 700 $ 700 $ 245 $ 245
Incorrect
Labelling the given values
Interest= I = $ 245 = I = $ 245
Principal Value= P = $ 700 = P = $ 700
Rate= r = ? = r = ?
Time Elapsed= t = 7 = t = 7
Solve for the rate ( r ) , ( r ) ,
I I = = P r t P r t Simple Interest Formula
$ 245 $ 245 = = $ 700 × r × 7 $ 700 × r × 7 Plug in the known values and simplify.
$ 245 $ 245 = = $ 4 , 900 × r $ 4 , 900 × r Divide both sides by $ 4 , 900 $ 4 , 900
0.05 0.05 = = r r Reverse the two sides so the unknown variable r r
r r = = 0.05 × 100 % 0.05 × 100 % Multiply the rate by 100% to get the answer as a percent.
r r = = 5 % 5 %
Question 5 of 5
What will the final balance be for $700 invested at 3% for four years?
Incorrect
Labelling the given values
Interest= I = ? = I = ?
Principal Value= P = $ 700 = P = $ 700
Rate= r = 3 % = r = 3 %
Time Elapsed= t = 4 = t = 4
First, express the rate as a decimal
3 % = 0.03 3 % = 0.03
Solve for the final balance by finding the Interest ( I ) ( I ) ( P ) ( P )
I I = = P r t P r t Simple Interest Formula
= = $ 700 × 0.03 × 4 $ 700 × 0.03 × 4 Plug in the known values
= = $ 84 $ 84
Final Balance
= = $ 784 $ 784 Now add the Interest I = $ 84 I = $ 84 P = $ 700 P = $ 700
