Simple Interest Calculation and Principles Quiz

Test your knowledge of simple interest with these financial math questions. Calculate interest, principal, rate, and time!

Practice Learn Test

What is the formula to calculate simple interest?

P × R × T

P × (1 + RT)

PRT

P × R ÷ T

If the principal is $1000, the rate is 5%, and the time is 2 years, what is the simple interest?

$100

$200

$50

$20

Which of the following formulas correctly represents the calculation of simple interest?

I = PRT

I = P ÷ RT

I = P × R × T

I = P + R + T

If the principal is $4000, the rate is 6%, and the time is 3 years, what is the simple interest?

$720

$740

$760

$780

What is the formula to calculate the total amount (A) when interest is compounded annually?

A = P × R × T

A = P × (1 + R)^T

A = PRT

A = P + I

What happens to the simple interest when the time period increases?

Increases

Decreases

Remains constant

Depends on the rate

A sum of money doubles itself in 5 years at a certain rate of simple interest. In how many years will it triple itself at the same rate?

10 years

15 years

20 years

25 years

What is the principal amount if the simple interest accrued on $2000 at a rate of 8% per annum for 3 years is $480?

$1800

$2000

$2400

$2600

If $5000 is invested at an interest rate of 6% per annum compounded annually, how much will it amount to after 3 years?

$5,950

$5,900

$5,800

$5,750

#10

At what annual rate of interest will a sum of money double itself in 10 years?

10%

15%

20%

#11

Which of the following will result in the highest simple interest earned on a principal amount over a 5-year period?

4% per annum compounded annually

5% per annum compounded semi-annually

6% per annum compounded quarterly

7% per annum compounded monthly