Simple and Compound Interest

Slides:

Advertisements

Similar presentations

Simple and Compound Interest

Advertisements

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

Simple Interest I =Prt I = Interest P = Principle r = rate t = time

Sullivan PreCalculus Section 4.7 Compound Interest

Simple Interest Day 2 Formula I = PRT.

Simple Interest SWBAT find simple interest ; find the total amount earned or due; find the rate of interest; find the time that principal is left on deposit.

Simple Interest Essential Skill: Explicitly Assess Information and Draw Conclusions.

Simple Interest 7th Grade Math.

Simple and Compound Interest. Simple Interest Interest is like “rent” on a loan. You borrow money (principal). You pay back all that you borrow plus more.

Simple Interest 21.6 Vocabulary Principal = the original amount of money that is saved or borrowed. Simple interest = a fixed percent of the principal.

Regular Deposits And Finding Time. An n u i t y A series of payments or investments made at regular intervals. A simple annuity is an annuity in which.

7-8 simple and compound interest

SIMPLE INTEREST Interest is the amount paid for the use of money.

3-3 Example 1 Find the simple interest earned on an investment of $500 at 7.5% for 6 months. 1. Write the simple interest formula. I = prt Lesson 3-3 Example.

Slide 1 Copyright © 2015, 2011, 2008 Pearson Education, Inc. Percent and Problem Solving: Interest Section7.6.

Do Now 4/12/11 Take out HW from last night. Take out HW from last night.  Text p. 365, #8-16 evens and #15 Copy HW in your planner. Copy HW in your planner.

Do Now 4/23/10 Take out HW from last night. Take out HW from last night. Practice worksheet 7.6 odds Practice worksheet 7.6 odds Copy HW in your planner.

Interest on Loans Section 6.8. Objectives Calculate simple interest Calculate compound interest Solve applications related to credit card payments.

1 Simple Interest By: Dilshad Akrayee. 2 Definition  Simple interest is interest that is computed on the original sum.  Formula: Principal amount *

Notes Over 7 – 8 1. Suppose you deposit $1000 in a savings account that earns 6% per year. Find the interest earned in two years. Simple Interest Formula.

Simple Interest.

Lesson 5-8 Simple Interest.

Using Percents Part 2.

Simple & Compound Interest

Lesson 7.6 Concept: How to find simple interest Guidelines: When you compute simple interest for a time that is less than 1year, write the time as a fraction.

Notes Over 7 – 7 Solve for the indicated variable.

Simple Interest Formula I = PRT. I = interest earned (amount of money the bank pays you) P = Principle amount invested or borrowed. R = Interest Rate.

Simple and Compound Interest Simple Interest I = Prt Compound Interest A = P(1 + r)

7.7 Simple and Compound Interest. Interest You EARN interest when you put $ into a savings account. You PAY interest when you borrow money...bank, loan,

Bellringer Calculate the Simple Interest for #s 1 and 3 and the Total cost for #2. 1.$1800 at 3.2% for 4 years. 2. $17250 at 7.5% for 6 years. 3. $3,650.

Simple Interest. is money added onto the original amount saved (earned) or borrowed (charged). Simple Interest: Video below!

Lesson 1 – Simple and Compound Interest Learning Goal I can calculate simple and compound interest.

Exercise Write 5% as a decimal Write 6.5% as a decimal Exercise.

Week 13 Simple Interest. Lesson Objectives After you have completed this lesson, you will be able to: Represent or solve simple interest problems. Solve.

Warm Up (-2)(5) (-7) 4.-50/(-5) 5.Find 30% of is what percent of 100?  34.

Calculating interest You can calculate the time value of your savings by figuring out how much interest you will earn. Principal – the original amount.

What is Interest? When you keep money in a savings account, your money earns interest. Interest is an amount that is charged for borrowing or using money,

Simple Interest Goal: Students will learn how to complete

Simple Interest.

Objective - To solve problems involving simple interest.

Simple Interest.

CHAPTER 8 Personal Finance.

Sullivan Algebra and Trigonometry: Section 6.6

Interest is about what happens to your money

Simple Interest By: Ms. Naira.

8.3 Compound Interest HW: (1-21 Odds, Odds)

Simple Interest 6.7.

Simple Interest.

Interest is about what happens to your money

Simple Interest and Compound Interests

Lesson 7.7 Simple and Compound Interest

Rounding 3 Round to the nearest whole number 3.46

I = PRT I = P x R x T nterest rincipal ate ime Simple Interest

Compound Interest.

Lesson 8-6 Solve problems involving simple interest.

Rounding 3 Round to the nearest whole number 3.46

Simple Interest Module 5 Lesson 3.

Day 86 – Introduce the power of interest

Lesson 7.8: Simple Interest

CHAPTER 8 Personal Finance.

Simple Interest 6.7.

Simple Interest & compound Interest

HOW TO MAKE MONEY WITHOUT DOING ANY WORK

Main Idea and New Vocabulary Example 1: Find Interest Earned

Do Now 4/11/11 Take out HW from last night. Copy HW in your planner.

Simple Interest Formula I = PRT.

More Applications of Percents

Review: Mini-Quiz Simple Interest

Presentation transcript:

Simple and Compound Interest Lesson 7.7 OBJ: To calculate interest earned and account balances

Simple Interest I = prt; where p is principal, r is the rate and t is the time in years. Interest – The amount earned or paid for the use of money. Principal – The amount of money borrowed or deposited. Simple Interest – The amount paid only on the principal Annual Interest Rate – The percent of the principal earned or paid per year.

Examples A $1000 bond earns 6% simple annual interest. What is the interest earned after 4 years? Find the simple interest earned on $500 after 5 years in a money market account paying 5%.

Balance (A) The amount of an account that earns simple interest is the sum of the interest and the principal. A = p + prt or A = p(1 + rt) You can use either formula to get the balance when calculating the balance after simple interest.

Examples Susan deposits $2000 into her savings account. What is her balance after she earns 7% simple interest for 6 years? Find the unknown amount A = ? p = $1000 r = 2.5% t = 2 years

Examples A = $1424.50 p = ? r = 3.5% t = 6 months Remember time must be in years!!!

Compound Interest The interest that is earned on both the principal and any interest that has been previously earned. Formula A = p(1 + r)t Example – You deposit $1200 into an account that earns 3.8% interst compounded annually. Find the balance after 5 years.

Examples You deposit $1200 into an account that earns 3.8% interest compounded annually. Find the balance after 5 years. Max borrows $3500 for a new car. The loan has 6.7% interest that will be compounded annually. How much money will he owe after 36 months?