1. GOOD MORNING Please turn in LAST WEEKS WEEKLY HOMEWORK to the box.
Pick up your WEEKLY HOMEWORK and SKILL BUILDER.
Please complete the first 2 sections of your builder at this time.
Please have your JOURNAL out for a few quick notes!

3. Simple Interest

4. Simple Interest
Interest = principle x interest rate per year x the time in years.
When you deposit money in a bank, the bank pays you for the use of your money. When you borrow money from the bank, the bank charges you for the use of their money.
Interest is the amount of money paid for the use of money. Interest is calculated at a certain percentage rate called the interest rate.
Principle is the original amount you deposited or borrowed.
Simple interest is interest calculated only on the principle.

5. p = Principle $ r = rate as a decimal t = time in years
Simple Interest
NOTES!
Interest = principle x interest rate per year x the time in years.
p = Principle $
r = rate as a decimal
t = time in years

6. You borrow $30,000 to buy a new car
You borrow $30,000 to buy a new car. The simple interest rate is 5 ½ % per year. Find the interest you will pay after 5 years.
p = 30,000
r = 0.055
t = 5

7. You borrow $12,000 from INVESTEX Credit Union
You borrow $12,000 from INVESTEX Credit Union. If you plan to pay off the loan in 96 months and get an interest rate of 7%, how much money will you have paid to INVESTEX?
p = 12,000
r = 0.07
t = 8

8. You receive $25,000 as a graduation gift and decide to deposit it in the bank at 5% interest for the next 25 years. How much money will you have at the end of that 25 years?
p = 25,000
r = 0.05
t = 25

9. 1. The Garcia family paid $200 in interest on a loan of $2000 for a period of 2 years. What was the interest rate?
p = 2,000
r = ?
t = 2
I = 200

10. 2. You earned $2.40 in 8 months in an account with an interest rate of 2.4%. How much was your initial investment?
p = ?
r = 0.024
t = 8/12
I = 2.4