1. 6-7 Change each percent to a decimal. 1.4% 2.9%3.2.0% 4.6.5%5. 5.09%6.18.21% COURSE 2 LESSON 9-7 (For help, go to Lessons 6-2.) Simple and Compound Interest

2. COURSE 2 LESSON 9-7 Solutions 1.4%0.04.0.04 2.9%0.09.0.09 3.2.0%0.02.00.02 4.6.5%0.06.50.065 5.5.09%0.05.090.0509 6. 18.21%0.18.210.1821 6-7 Simple and Compound Interest

3. COURSE 2 LESSON 9-7 n = 6n = 0.9 Find the value of n. a. =b. = 18 15 n5n5 1.5 4.5 n 2.7 6-7 Simple and Compound Interest

4. Find the simple interest on $500 invested at a 3% annual interest rate for 4 years. COURSE 2 LESSON 9-7 The interest is $60. I = (500)(0.03)(4)Substitute. Use 0.03 for 3%. Write the formula. I = prt Simplify. = 60 6-7 Simple and Compound Interest

5. You deposit $500 in a bank account that pays 3% interest compounded annually. What is your balance after 4 years? COURSE 2 LESSON 9-7 Check for Reasonableness The compound interest is $562.75 – $500, or about $62.75. Simple interest would be I = ($500)(0.03)(4), or $60. Since compound interest is greater, the answer is reasonable. The balance after 4 years is $562.75 Write the formula. B = p(1 + r ) t Substitute. Use 0.03 for 3%. = 500(1 + 0.03) 4 Use a calculator to simplify the power. = 500(1.12550881) 562.75Round to the nearest cent. 6-7 Simple and Compound Interest

6. COURSE 2 LESSON 9-7 Krista opened a savings account with $100. 1.Find the simple interest earned at a 6% annual rate for 5 years. 2.Find the balance at 6% interest compounded annually for 5 years. $30 $133.82 6-7 Simple and Compound Interest