5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 1. $60; with a 60% discount 2. $40; with 7% tax 3. $199; with a15% discount 4. $119.50; with 20% off and 7% tax New Rule – Homework must be turned in at the beginning of class to be considered on time.

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 1. $60; with a 60% discount

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 1. $60; with a 60% discount 100% - 60% = 40% part = percent (in decimal form) x whole part = .4 · 60 = $24.00

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 2. $40; with 7% tax

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 2. $40; with 7% tax 100% + 7% = 107% part = percent (in decimal form) x whole part = 1.07 · 40 = $42.80

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 3. $199; with a15% discount

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 3. $199; with a15% discount 100% - 15%= 85% part = percent (in decimal form) x whole part = .85 · 199 = $169.15

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 4. $119.50; with 20% off and 7% tax

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 4. $119.50; with 20% off and 7% tax 100% - 20%= 80% part = percent (in decimal form) x whole part = .8 · 119.5 = $95.60 100% + 7% = 107% part = 1.07 · 95.6 = $102.29

Lesson 7.2.8 Financial Literacy Wednesday, Feb 4 Lesson 7.2.8 Financial Literacy

Solve One-Step Inequalities Hint - the principal amount is the initial amount you invest or deposit into an account.

Solve One-Step Inequalities Hint - rate is in decimal form.

Solve One-Step Inequalities

Solve One-Step Inequalities

Financial Literacy Objective: To solve problems involving simple interest.

Financial Literacy The principal is the amount of money deposited or borrowed.

Financial Literacy The principal is the amount of money deposited or borrowed. Simple interest is the amount paid or earned for the use of the money.

Financial Literacy The formula below shows how to calculate simple interest. Write this down.

Financial Literacy Dollars earned($) Percent (decimal) Dollars deposited($) Years

I = prt Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = prt Interest earned?

I = prt Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = prt Principal?

I = 580rt Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = 580rt Rate?

I = 580 · 0.03t Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = 580 · 0.03t Time?

I = 580 · 0.03 · 5 Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = 580 · 0.03 · 5 What is the simple interest?

I = 580 · 0.03 · 5 = $87 Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = 580 · 0.03 · 5 = $87

I = 580 · 0.03 · 5 = $87 Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = 580 · 0.03 · 5 = $87 How much will he earn in 6 months?

I = 580 · 0.03 · 6 12 = $8.70 Financial Literacy Arnold puts $580 into a savings account. The account pays 3% simple interest. How much will he earn in 5 years? I = 580 · 0.03 · 6 12 = $8.70 Remember, time is in years. This fraction should be simplified or can be converted to a decimal.

I = prt Financial Literacy Jenny puts $1000 into a savings account. The account pays 2.5% simple interest. How much will he earn in 3 years? I = prt Do this on your own.

I = prt I = 1000 · 0.025 · 3 = $75 Financial Literacy Jenny puts $1000 into a savings account. The account pays 2.5% simple interest. How much will he earn in 3 years? I = prt I = 1000 · 0.025 · 3 = $75 On the homework, this is the work that must be shown; in addition to the long multiplication. The long multiplication can be done on another piece of paper, but must be numbered.

I = prt Financial Literacy Marco invests $800 into a savings account. The account pays 4% simple interest. How much will he earn in 5 years? I = prt Do this on your own.

I = prt I = 800 · 0.04 · 5 = $160 Financial Literacy Marco invests $800 into a savings account. The account pays 4% simple interest. How much will he earn in 5 years? I = prt I = 800 · 0.04 · 5 = $160

I = prt Financial Literacy If you borrow money from a bank, you pay the bank interest for the use of their money. You also pay interest to a credit card company if you have an unpaid balance. You can use the formula to also find the amount of interest owed. I = prt

I = prt Financial Literacy Rondell’s parents borrow $6,000 from the bank to buy a car. The interest rate is 6% a year. How much simple interest will they pay if they take 2 years to repay the loan? I = prt Do this on your own.

I = prt I = 6000 · 0.06 · 2 = $720 Financial Literacy Rondell’s parents borrow $6,000 from the bank to buy a car. The interest rate is 6% a year. How much simple interest will they pay if they take 2 years to repay the loan? I = prt I = 6000 · 0.06 · 2 = $720 This is in addition to the initial $6,000.

Financial Literacy Derrick’s dad bought new tires for $900 using a credit card. His card has an interest rate of 19%. If he has no other charges on his card and does not make a payment, how much money will he owe after one month? Do this on your own.

Financial Literacy I = prt I = 900 · 0.19 · 1 12 I = 171· 1 12 = 14.25 Derrick’s dad bought new tires for $900 using a credit card. His card has an interest rate of 19%. If he has no other charges on his card and does not make a payment, how much money will he owe after one month? I = prt I = 900 · 0.19 · 1 12 I = 171· 1 12 = 14.25 $900 + $14.25 = $914.25 14.25 12)171.00 -12 51 -48 30 -24 60

I = prt Financial Literacy Mrs. Hanover borrows $1,400 at a rate of 5.5% per year. How much simple interest will she pay if it takes 8 months to repay the loan? I = prt Do this on your own.

I = prt I = 1400 · 0.055 · 8 12 = $51.33 Financial Literacy Mrs. Hanover borrows $1,400 at a rate of 5.5% per year. How much simple interest will she pay if it takes 8 months to repay the loan? I = prt I = 1400 · 0.055 · 8 12 = $51.33 Remember that 8 12 can be simplified to 2 3

I = prt Financial Literacy Luis is taking out a car loan for $5,000. He plans on paying the loan off in 2 years. At the end of 2 years, he will have paid $300 in interest. What is the simple interest rate on the car loan? I = prt

I = prt Financial Literacy 300 = 5000 · r · 2 300 = 10,000r Luis is taking out a car loan for $5,000. He plans on paying the loan off in 2 years. At the end of 2 years, he will have paid $300 in interest. What is the simple interest rate on the car loan? I = prt 300 = 5000 · r · 2 300 = 10,000r 300 10,000 = r 300 10000 = r 3% = r

Financial Literacy Johanna’s parents give her $10 per week for lunch money. Dustin bought a $2,000 computer with a credit card. The minimum payment each month is $35. Each month 1% of the unpaid balance is added to the amount he owes. If he pays only $35 the 1st month, what will he owe the 2nd month?

Financial Literacy Johanna’s parents give her $10 per week for lunch money. Dustin bought a $2,000 computer with a credit card. The minimum payment each month is $35. Each month 1% of the unpaid balance is added to the amount he owes. If he pays only $35 the 1st month, what will he owe the 2nd month? principal – min payment principal – min payment x monthly interest After 1st month = ($2000 – $35) + ($2000 – $35) · 0.01 = $1965 + $1965 · 0.01 = $1965 + $19.65 = $1984.65

Financial Literacy Johanna’s parents give her $10 per week for lunch money. Dustin bought a $2,000 computer with a credit card. The minimum payment each month is $35. Each month 1% of the unpaid balance is added to the amount he owes. If he pays the minimum payment, what will he owe the 3rd month?

Financial Literacy Johanna’s parents give her $10 per week for lunch money. Dustin bought a $2,000 computer with a credit card. The minimum payment each month is $35. Each month 1% of the unpaid balance is added to the amount he owes. If he pays the minimum payment, what will he owe the 3rd month? After 1st month = $1984.65 new principal – min payment new principal – min payment x monthly interest After 2nd month = ($1984.65 – $35) + ($1984.65 – $35) ·0.01 = $1949.65 + $1949.65 · 0.01 = $1949.65 + $19.50 = $1969.15

Financial Literacy Agenda Notes Homework Homework Practice 7.2.8 Show all work and circle the answer. Do not do #7 or 8 Due Thursday, Feb 5 Chapter 7.2/7.3 Test - Tuesday, Feb 10