### 9-3: TEKS Practice

• 1. To find simple interest, you multiply the principal (in dollars), the interest rate (as a decimal), and the time in years. The equation 24.00 = 400 · 0.015 · 4 shows how to find the simple interest for a certain account after 4 years.

• a. What is the interest rate (as a percent)?

• A. 0.015%

• B. 400%

• C. 1.5%

• D. 24.00%

• b. How much is the simple interest?

• A. \$4

• B. \$1.50

• C. \$24.00

• D. \$400

• c. What is the principal?

• A. \$4

• B. \$24.00

• C. \$400

• D. \$1.50

• 2. Suppose you deposited \$100 in a savings account 4 years ago. The simple interest rate is 2.2%. The interest that you earned in those 4 years is \$8.80.

Which of the following is/are true? Select all that apply.

• A. r = 2.2%

• B. p = 100

• C. I = 4

• D. t = 8.80

• 3. An account has a principal of \$500 and a simple interest rate of 3.3%. Figure 1 below shows the simple interest earned and the new account balance for 1, 2, and 3 years. Complete the table in Figure 1 for the fourth year.

• 4. If the simple interest on \$2,000 for 2 years is \$320, then what is the interest rate?

• 5. Edward deposited \$6,000 into a savings account 4 years ago. The simple interest rate is 3%.

• a. How much money did Edward earn in interest?

• b. What would be his new account balance?

• 6. Think About the Process You deposit \$2,900 into a bank account with a simple interest rate of 10%.

• a. How do you find your account balance after 5 years?

• A. First use I = prt to find the simple interest earned after 5 years. Then add that to the rate.

• B. First use I = prt to find the simple interest earned after 5 years. Then add that to the time.

• C. First use I = prt to find the simple interest earned after 5 years. Then subtract that from the principal.

• D. First use I = prt to find the simple interest earned after 5 years. Then add that to the principal.

• b. What will your account balance be after 5 years?

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