Simple Interest 3

Question 1 of 4

If you borrow $500 at 5% for four years, how much will you pay back at the end of the term?

Balance Owing $= $$ $=$ \$ (600)

Incorrect

Simple Interest Formula

I = P r t

$color(purple)(I)=color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$

Labelling the given values

Interest

= I = ?

$=I=?$

Principal Value

= P = $ 500

$=P=$500$

Rate

= r = 5 %

$=r=5%$ per annum

Time Elapsed

= t = 4

$=t=4$ years

First, express the rate as a decimal

5 % = 0.05

$5% = 0.05$

Solve for the balance owing at the end of the term by adding the Interest

(I)

$(I)$ and the Principal

(P)

$(P)$ .

$I$ $color(purple)(I)$	$=$ $=$	$P r t$ $color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$	Simple Interest Formula
	$=$ $=$	$$ 500 \times 0.05 \times 4$ $color(forestgreen)($500) color(black)(times) color(royalblue)(0.05) color(black)(times) color(tomato)(4)$	Plug in the known values
	$=$ $=$	$$ 100$ $$100$
Balance Owing	$=$ $=$	$$ 600$ $$600$	Now add the Interest $I = $ 100$ $I=$100$ to the Principal $P = $ 500$ $P=$500$ to find the balance owing.

$ 600

$$600$ balance owing

Question 2 of 4

If you borrow $200 at 8% for seven years, how much will you pay back at the end of the term?

Balance Owing $= $$ $=$ \$ (312)

Incorrect

Simple Interest Formula

I = P r t

$color(purple)(I)=color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$

Labelling the given values

Interest

= I = ?

$=I=?$

Principal Value

= P = $ 200

$=P=$200$

Rate

= r = 8 %

$=r=8%$ per annum

Time Elapsed

= t = 7

$=t=7$ years

First, express the rate as a decimal

8 % = 0.08

$8% = 0.08$

Solve for the balance owing at the end of the term by adding the Interest

(I)

$(I)$ to the Principal

(P)

$(P)$ .

$I$ $color(purple)(I)$	$=$ $=$	$P r t$ $color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$	Simple Interest Formula
	$=$ $=$	$$ 200 \times 0.08 \times 7$ $color(forestgreen)($200) color(black)(times) color(royalblue)(0.08) color(black)(times) color(tomato)(7)$	Plug in the known values
	$=$ $=$	$$ 112$ $$112$
Balance Owing	$=$ $=$	$$ 312$ $$312$	Now add the Interest $I = $ 112$ $I=$112$ to the Principal $P = $ 200$ $P=$200$ to find the balance owing.

$ 312

$$312$ balance owing

Question 3 of 4

You put $700 into a savings account with an interest rate of 5% which earns $140.00 over a period of time. How long was the period of time?

Time $=$ $= \$ (4) years

Incorrect

Simple Interest Formula

I = P r t

$color(purple)(I)=color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$

Labelling the given values

Interest

= I = $ 140

$=I=$140$

Principal Value

= P = $ 700

$=P=$700$

Rate

= r = 5 %

$=r=5%$ per annum

Time Elapsed

= t = ?

$=t=?$ years

First, express the rate as a decimal

5 % = 0.05

$5% = 0.05$

Solve for the time

(t),

$(t),$ using the formula

$I$ $color(purple)(I)$	$=$ $=$	$P r t$ $color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$	Simple Interest Formula
$$ 140$ $color(purple)($140)$	$=$ $=$	$$ 700 \times 0.05 \times t$ $color(forestgreen)($700) color(black)(times) color(royalblue)(0.05) color(black)(times) color(tomato)(t)$	Plug in the known values
$$ 140$ $$140$	$=$ $=$	$$ 35 \times t$ $$35timest$	Simplify
$4$ $4$	$=$ $=$	$t$ $t$	Divide both sides by $$ 35$ $$35$ .
$t$ $t$	$=$ $=$	$4$ $4$	Reverse the two sides so that the unknown $t$ $t$ is on the left-hand side.

4

$4$ years

Question 4 of 4

If you invest $500 at an interest rate of 10%, how much money will you have after three years?

Final Balance $= $$ $=$ \$ (650)

Incorrect

Simple Interest Formula

I = P r t

$color(purple)(I)=color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$

Labelling the given values

Interest

= I = ?

$=I=?$

Principal Value

= P = $ 500

$=P=$500$

Rate

= r = 10 %

$=r=10%$ per annum

Time Elapsed

= t = 3

$=t=3$ years

First, express the rate as a decimal

10 % = 0.1

$10% = 0.1$

Solve for the final balance by adding the Interest

(I)

$(I)$ to the Principal

(P)

$(P)$ .

$I$ $color(purple)(I)$	$=$ $=$	$P r t$ $color(forestgreen)(P)color(royalblue)(r)color(tomato)(t)$	Simple Interest Formula
	$=$ $=$	$$ 500 \times 0.1 \times 3$ $color(forestgreen)($500) color(black)(times) color(royalblue)(0.1) color(black)(times) color(tomato)(3)$	Plug in the known values
	$=$ $=$	$$ 150$ $$150$
Final Balance	$=$ $=$	$$ 650$ $$650$	Now add the Interest $I = $ 150$ $I=$150$ to the Principal $P = $ 500$ $P=$500$ to get the final balance.

$ 650

$$650$ final balance

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Quiz summary

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1. Question

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Simple Interest Formula

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2. Question

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Simple Interest Formula

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3. Question

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Simple Interest Formula

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4. Question

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Simple Interest Formula

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