1 STANDARDS Problem 1 Problems 3 Problem 2 SIMPLE INTEREST END SHOW PRESENTATION CREATED BY SIMON PEREZ. All rights reserved

2 1.3 Convert fractions to decimals and percents and use these representations in estimations, computations and applications. 1.3 Convertir fracciones a decimales y porcentajes y usar estas representaciones en estimaciones, cálculos y aplicaciones. GRADE 7: Number Sense 1.7 Solve problems that involve discounts, markups, commissions, and profit and compute simple and compound interest. 1.7 Resolver problemas que involucran descuentos, comisiones, y ganancias y a calcular interés simple y compuesto. PRESENTATION CREATED BY SIMON PEREZ. All rights reserved

3 STANDARDS Peter borrowed $1,000 to buy a computer to go to college. The lender lent him the money with a 7% annual interest. Peter expects to pay the money in three and a half years. What is the amount that he will pay in interests? What is the full amount he will have paid in total? $1,000 = 0.07x $1,000 = $70 $70 is the 7% that the student will have paid in interest per year. 7% are 7 hundredths of $1,000 Calculating the interest: How many years will he be paying interest? = 3.5 What interest will he have paid in those 3.5 years? $70x 3.5= $245 What is the total amount paid by him including interest? $1,000+ $245= $1,245 Total Amount to pay after interest is $1,245. PRESENTATION CREATED BY SIMON PEREZ. All rights reserved

4 STANDARDS A company that sells carpets and tiles is offering to finance a project at RHS. The cost of the project is $3,000 and the interest that the school will have to pay is 9%. The school plans to pay within 39 months. What will be the total cost, including the interest? (round your answers to the nearest dollar) $3,000 = 0.09x $3,000 = $270 $270 is the 9% in interest that the school will be paying per year. 9% are 9 hundredths of $3,000 Calculating the interest: How many years will the school be paying interest? = 3.25 What interest will RHS have paid in those 3.25 years? $270x 3.25 What is the total amount paid by the school including interest? $3000+ $877 Total Amount to pay after interest is approximately $3, months = $877 $3, = PRESENTATION CREATED BY SIMON PEREZ. All rights reserved

5 STANDARDS José borrowed $12,250 to buy an automobile. The bank lent him the money with a 4.5% annual interest. Jose hopes to pay back the money in 18 months. What is the amount that he will pay in interests? What is the full amount he will have paid in total? (round your answers to the nearest dollar) $12,250 = 0.045x $12,250 = $ $551 is the 4.5% that the Jose will have paid in interest per year. 4.5% are 4.5 hundredths of $12,250 Calculating the interest: How many years will he be paying interest? = 1.5 What interest will he have paid in those 1.5 years? $551x 1.5 What is the total amount paid by him including interest? $12,250+ $826 Total Amount to pay after interest is approximately $13, months = $826 $13, = PRESENTATION CREATED BY SIMON PEREZ. All rights reserved