3­3 Savings Accounts.notebook
October 29, 2014
Bellwork 10-29-14
Anything that we can do to raise personal savings is very much in the interest of this country.
Alan Greenspan, Economist
1. Where does the money that banks lend out for loans
come from?
2. What are the advantages of direct deposit? Are there
disadvantages? Explain.
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3­3 Savings Accounts.notebook
October 29, 2014
EXAMPLE 4
How much simple interest does $2,000 earn in 7 months at an interest rate of 5%? 2
3­3 Savings Accounts.notebook
October 29, 2014
CHECK YOUR UNDERSTANDING
How much simple interest would $800 earn in 300 days in a non‐leap year at an interest rate of 5.71%? Round to the nearest cent.
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3­3 Savings Accounts.notebook
October 29, 2014
EXAMPLE 5
How much principal must be deposited to earn $1,000 simple interest in 2 years at a rate of 5%? 4
3­3 Savings Accounts.notebook
October 29, 2014
CHECK YOUR UNDERSTANDING
How much principal must be deposited in a two‐year simple interest account that pays 3¼% interest to earn $300 in interest? 5
3­3 Savings Accounts.notebook
October 29, 2014
EXAMPLE 6
Derek has a bank account that pays 4.1% simple interest. The balance is $910. When will the account grow to $1,000?
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3­3 Savings Accounts.notebook
October 29, 2014
CHECK YOUR UNDERSTANDING
How long will it take $10,000 to double at 11% simple interest? 7
3­3 Savings Accounts.notebook
October 29, 2014
EXAMPLE 7
Kerry invests $5,000 in a simple interest account for 5 years. What interest rate must the account pay so there is $6,000 at the end of 5 years?
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3­3 Savings Accounts.notebook
October 29, 2014
CHECK YOUR UNDERSTANDING
Marcos deposited $500 into a 2.5‐year simple interest account. He wants to earn $200 interest. What interest rate must the account pay?
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3­3 Savings Accounts.notebook
October 29, 2014
Homework: Page 136 #s 9-17
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