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.

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Presentation transcript:

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

COURSE 2 LESSON 9-7 Solutions 1.4% % % % % % Simple and Compound Interest

COURSE 2 LESSON 9-7 n = 6n = 0.9 Find the value of n. a. =b. = n5n n Simple and Compound Interest

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. = Simple and Compound Interest

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 $ – $500, or about $ 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 $ Write the formula. B = p(1 + r ) t Substitute. Use 0.03 for 3%. = 500( ) 4 Use a calculator to simplify the power. = 500( ) Round to the nearest cent. 6-7 Simple and Compound Interest

COURSE 2 LESSON 9-7 Krista opened a savings account with $ 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 $ Simple and Compound Interest