Download presentation

Presentation is loading. Please wait.

Published byJoslyn Worster Modified over 2 years ago

1
imple Interest

2
(Don’t write this slide – you will see it again) 1) You REALLY want to buy this car. It costs $15,000. You decide to get a five year loan with a 6.5% interest rate for $15,000. How much interest will you pay?

3
Before you can do the problem you must know these terms: Principle – Amount of loan Rate – Interest rate written as a decimal (divide it by 100) Time – However many years the loan is for. ***This must be measured in years.

4
Formula Interest = Principle * Rate * Time OR I = PRT

5
You REALLY want to buy this car. It costs $15,000. You decide to get a five year loan with a 6.5% interest rate for $15,000. How much interest will you pay? Step 1: Turn the percent into a decimal: 6.5% = _______ Step 2: I = PRT Principle(loan amount) x Rate(percent as decimal) x Time (years) I = 15,000 x ________ x 5 = _________

6
2)You go out and spend $1500.00 on your credit card for a flat screen plasma television. It takes you 2 years to get your credit card paid off. Your credit card has an interest rate of 18.5%. How much interest will you pay on your credit card? Step 1: Turn percent into decimal: 18.5% = _______ Step 2: Principle (loan amount) x rate (decimal) x time (years) = interest paid _________ x _______ x _______ = ______

7
3) You open a bank account. You put $2000.00 in your bank account. Your account earns 2% interest. After 7 years how much interest will your bank account earn? Step 1: Turn percent into decimal: 2% = _______ Step 2: I = PRT

8
Total Paid To figure out how much was paid in total you have to add the interest to the principle. Total Price = Principle + Interest Paid

9
4) You buy some furniture for your new house. The furniture costs $5,000. You get a loan for 36 months with an interest rate of 8.5%. How much will you pay for your furniture? Step 1: Turn percent into decimal: 8.5% = _______ Step 2: I = PRT * Step 3: Principle (loan amount) + interest paid = Total paid ____________ + _________ = ________

Similar presentations

OK

Simple and Compound Interest Unit 4 - Investing. Determining Simple Interest I = p * r * t Interest = Principle X Rate X Time ( in years)

Simple and Compound Interest Unit 4 - Investing. Determining Simple Interest I = p * r * t Interest = Principle X Rate X Time ( in years)

© 2017 SlidePlayer.com Inc.

All rights reserved.

Ads by Google

Ppt on computer virus and antivirus Ppt on campus recruitment system process Ppt on social networking download Ppt on evolution of human resource management Ppt on acute coronary syndrome guidelines Ppt on online job portal project Ppt on refraction of light through glass slab Ppt on south america continent Ppt on product advertising examples Ppt on project life cycle phases