1 / 9

Simple Interest

Simple Interest. Simple Interest. is money added onto the original amount saved (earned) or borrowed (charged). Simple Interest Formula. I = prt. I (Interest) - The amount earned or the amount charged p (Principal)- The amount borrowed or deposited

marilynmcconnell
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. Simple Interest is money added onto the original amount saved (earned) or borrowed (charged).

  3. Simple Interest Formula I = prt I (Interest) - The amount earned or the amount charged p (Principal)- The amount borrowed or deposited r (Rate) – Percent at which the interest is charged t (Time)- In years or months

  4. How much money would you pay in interest if you borrowed $1,600 for 1 ½ years at 16% APR? Calculating Simple Interest Convert the percent to a decimal. 16% = .16 I = prt I = $1,600 x .16 x 1.5 I = $384

  5. Shawnique bought a beautiful house for $350,000. Her loan was for 30 years at 6.5% APR. How much money will she end up paying in interest? 6.5% = . 065 I = prt I = $350,000 x .065 x 30 I = $682,500

  6. Kent put $8,500 into an 18 month CD. The interest rate is 3.25% How much money will Kent earn in interest? 3.25% = . 0325 I = prt I = $8,500 x .0325 x 1.5 I = $414.38

  7. Katie bought a new sports car for $28,500. She financed her car for 6 years at 6.75%APR. How much will she end up paying for interest on her car? 6.75% = . 0675 I = prt I = $28,500 x .0675 x 6 I = $11,542.50

  8. Cody bought a new truck for $25,000. He took out a loan for 5 ½ years with 7.75% APR. How much will Cody end up paying in interest? 7.75% = . 0775 I = prt I = $25,000 x .0775 x 5.5 I = $10,656.25

  9. Tia saved her $9,000 for 2 ½ years at 4.25% APR in a CD, to go on a month long vacation with her family. How much did she earn in interest? 4.25% = . 0425 I = prt I = $9,000 x .0425 x 2.5 I = $956.25

More Related