1 / 13

Simple Interest

Simple Interest. Vocabulary. Principal: An amount of money borrowed or loaned. Interest: A charge for the use of money, paid by the borrower to the lender. Simple Interest: Interest paid only the principal. How do you calculate Simple Interest?. Interest = Principal × Rate × Time

alma
Download Presentation

Simple Interest

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Simple Interest

  2. Vocabulary Principal: An amount of money borrowed or loaned. Interest: A charge for the use of money, paid by the borrower to the lender. Simple Interest: Interest paid only the principal

  3. How do you calculate Simple Interest? Interest = Principal × Rate × Time I = P × r × t Or I=Prt

  4. Example 1: Simple Interest Suppose you invest $500 for 3 years at a simple interest rate of 5% per year. How much money will you have at the end of the 3 years? I = p × r × t I = $500 × 5% ×3 I = $500 × .05 × 3 “I” represents the interest I = $75 “P” represents the principal “r” represents the interest rate per year “t” represents the time in years

  5. Example 1: Total Suppose you invest $500 for 3 years at a simple interest rate of 5% per year. Find the total amount at the end of the 3 years. T = p + I T = $500 + $75 T = $575 “T” represents the total “p” represents the principal “I” represents the interest

  6. Example 3: Simple Interest Alex invest $5000 for 2 years at a simple interest rate of 9% per year. Find the amount of interest. I = p × r × t I= 5000 × .09 × 2 p=$5000 I=$900 r=9% t=2 I=?

  7. Example 4: Total Suppose you invest $500 for 3 years at a simple interest rate of 5% per year. Find the total amount at the end of the 3 years. T=p + I T= $900 + 500 I=$900 T= $1400 P=$500 T=?

  8. 1.) Chris invest $300 for 8 years at a simple interest rate of 12% per year. Find the amount of interest and the total amount.

  9. 2.) Ryan invests $870 for 3 years at a simple interest rate of 6% per year. Find the amount of interest and the total amount.

  10. 3.) Megan borrowed $12, 000 for 1 year at a simple interest rate of 6.75% per year. Find the amount of interest and the total amount.

  11. 4.) Haley invested $1000 for 2 years at a simple interest rate of 8.25% per year. Find the amount of interest and the total amount.

  12. 5.) Jacob invests $850 at a simple interest rate of 5.5% per year for 5 years. Find the amount of interest and the total amount.

  13. 6.) Carrington invests $15,000 for 8 years at a simple interest rate of 6.75% per year. Find the amount of interest and the total amount.

More Related