1. Simple Interest I =Prt I = Interest P = Principle r = rate t = time
The amount of money either being borrowed or saved
r = rate
A %, that will need to be converted into a decimal
t = time
The amount of time in years

2. The interest is $4500 15,000 • 0.06 • 5 P = 15,000 r = 6% t = 5 years
What is the interest on a car loan for 5 years with a 6% interest rate when you borrow $15,000?
P = 15,000
r = 6%
t = 5 years
15,000 • 0.06 • 5
……..0.06
The interest is $4500
At the end of the 5 years, how much did your car really end up costing you?
Total cost = Principle + Interest
T = P + I
15,
= $19,500
Your car really ended up costing you $19,500

3. The interest is $170 2500 • 0.017 • 4 P = 2,500 r = 1.7% t = 4 years
You are going to the bank and depositing $ The bank is going to give you an interest rate of 1.7% You are going to leave your money in the account for 4 years
P = 2,500
r = 1.7%
t = 4 years
2500 • • 4 ……
The interest is $170
At the end of the 4 years, how much money do you really have in your bank account?
Total cost = Principle + Interest
T = P + I
= $2670
Your bank account now has $2670 in it.

4. The interest is $90 2,000 • 0.09 • 0.5 P = 2,000 r = 9% t = 6 months
What is the interest on a loan for 6 months with a 9% interest rate when you borrow $2,000?
P = 2,000
r = 9%
t = 6 months
2,000 • 0.09 • 0.5
……..0.09
……..6/12
……..0.5
The interest is $90
At the end of the 6 months, how much did your loan really end up costing you?
Total cost = Principle + Interest
T = P + I 2,
= $2,090
Your loan really ended up costing you $2,090

5. The bank is going to loan you $25,000 for you to buy a new car
The bank is going to loan you $25,000 for you to buy a new car. The loan will be for 5 years. What interest rate did they use if you end up paying $5,000 in interest?
I = $5, P = 15,000
r = ? t = 5 years
5,000 = 25,000 • ? • 5
5,000 = 125,000 • ?
5,000/125,000 = ?
? = 0.04
The interest rate was 4%

6. Simple Interest I = P = r = t =
The amount of ________ either being borrowed or saved
r =
A _____, that will need to be converted into a ____________
t =
The amount of ________ in ________

7. The interest is $ P = r = t =
What is the interest on a car loan for 5 years with a 6% interest rate when you borrow $15,000?
P =
r =
t =
The interest is $
At the end of the 5 years, how much did your car really end up costing you?
Total cost =
T = +
______ + _______
= $__________
Your car really ended up costing you $_______

8. The interest is $ P = r = t = T = ____ + _____
You are going to the bank and depositing $ The bank is going to give you an interest rate of 1.7% You are going to leave your money in the account for 4 years
P =
r =
t =
The interest is $
At the end of the 4 years, how much money do you really have in your bank account?
Total cost = ___________ + ____________
T = ____ + _____
________ + _______
= $_________
Your bank account now has $_________ in it.

9. The interest is $ P = r = t =
What is the interest on a loan for 6 months with a 9% interest rate when you borrow $2,000?
P =
r =
t =
The interest is $
At the end of the 6 months, how much did your loan really end up costing you?
Total cost = ___________ + __________
T = _____ + ____
________ + _______
= $_________
Your loan really ended up costing you $______

10. The bank is going to loan you $25,000 for you to buy a new car
The bank is going to loan you $25,000 for you to buy a new car. The loan will be for 5 years. What interest rate did they use if you end up paying $5,000 in interest?
I = P =
r = t =
= • •
= •
/ = ?
? =
The interest rate was _____%