Mrc Simple Interest Quiz 1

1. The formula for simple interest is..

P = IRT/100

I = PRT/100

I = PRT/10

P = IRT/P

2. Laura and Paul invest $6000 at 12% p.a. for a period of 24 months. Laura and Paul earn $1,440 interest from their investment. Your working out to find the interest should look like..

I = (6000 x 12 x 24)/100

I = (1440 x 12 x 24)/100

I = (6000 x 12 x 2)/100

I = (1440 x 12 x 2)/100

3. $15,000 is invested at 6% p.a for 42 months. What is the time period in years?

4.2 years

4 years

3.5 years

3 years

4. Sarah and Robert plan to invest some money for their child Ryan. They invest $4000 for 30 months in an account that pays 4.5% p.a. At the end of 30 months, they will have earned $450 interest. What was the principle amount?

4.5

$4000

30

$450

5. Principal is the...

Amount of money borrowed or loaned

Amount of simple interest

The period of time, usually expressed in years

Rate per unit time; usually per annum.