20b simple interest.notebook
Do Now: 1. Open Binders to blank sheet of paper
2. Write 20: Simple Interest 20b simple interest.notebook
Interest = Principal x Rate x Time
Interest­
Money you get for putting $ in bank or investing or
Money you pay for borrowing $
Principal­
Initial amount of $ that you invest or borrow
Rate­ (annual rate)
% of the principal that you get or pay yearly
Time­
# of years
2) Balance:
Amount of $ that is in your account
20b simple interest.notebook
I invest $1000 into a savings account that pays 4.5% simple interest for 3 years.
How much interest will you make?
What will the balance be after interest?
20b simple interest.notebook
I invest $1000 into a savings account that pays 4 % simple interest for 5 years.
How much interest will you make?
What will the balance be after interest?
20b simple interest.notebook
I borrow $500 from a bank that charges 7.5% simple interest for 10 years.
How much interest will you pay?
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r
a
Bo
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How much will you pay after interest?
20b simple interest.notebook
A $1000 savings bond pays 3% simple interest. I want to cash the savings bond after 3 months.
How much interest will you make?
What will the balance be after interest?
20b simple interest.notebook
A $600 savings bond pays 2% simple interest. I cash the savings bond after 18 months.
How much interest will you make?
What will the balance be after interest?
20b simple interest.notebook
I = Prt
I= $175.50 P= $450
r= 6.5%
t= ?
20b simple interest.notebook
I = Prt
I= $35000 P= $20000
r= ?
t= 25
20b simple interest.notebook
I = Prt
I= $127.50 P= $1500
r= 4.25%
t= ?
20b simple interest.notebook
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