1. Lesson 9.7: Simple Interest ALCOS: 3, 5, 6 Objective: Students will use the simple interest formula to calculate simple interests.

2. If someone borrows money, what factors influence how much is paid back? Principal - How much was borrowed. Time - How long it was borrowed for. (in years) Rate Rate - (annual % rate) What interest was charged. Amount to Payback =Principal+Interest Interest =PrincipalRateTime

3. Joe borrows $200 from the bank at 6% simple interest for 3 years. What interest does he owe, and what is his total balance (amount to payback)? InterestBalance Balance =P+I 200+36 Balance = 236 Balance = $236

4. Juan invests $5000 in bonds for 6 months at an annual interest rate of 7%. How much interest did he earn, and what is the balance in his account? InterestBalance Balance =P+I 5000+175 Balance = 5175 Balance = $5175

5. Find the simple interest and the balance. Balance =P+I 2000+60 Balance = $2060

6. Find the annual simple interest rate.

8. Find the principal amount invested.