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

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Simple Interest I =Prt I = Interest P = Principle r = rate t = time
The amount of money either being borrowed or saved r = rate A %, that will need to be converted into a decimal t = time The amount of time in years

The interest is \$4500 15,000 • 0.06 • 5 P = 15,000 r = 6% t = 5 years
What is the interest on a car loan for 5 years with a 6% interest rate when you borrow \$15,000? P = 15,000 r = 6% t = 5 years 15,000 • 0.06 • 5 ……..0.06 The interest is \$4500 At the end of the 5 years, how much did your car really end up costing you? Total cost = Principle + Interest T = P + I 15, = \$19,500 Your car really ended up costing you \$19,500

The interest is \$170 2500 • 0.017 • 4 P = 2,500 r = 1.7% t = 4 years
You are going to the bank and depositing \$ The bank is going to give you an interest rate of 1.7% You are going to leave your money in the account for 4 years P = 2,500 r = 1.7% t = 4 years 2500 • • 4 …… The interest is \$170 At the end of the 4 years, how much money do you really have in your bank account? Total cost = Principle + Interest T = P + I = \$2670 Your bank account now has \$2670 in it.

The interest is \$90 2,000 • 0.09 • 0.5 P = 2,000 r = 9% t = 6 months
What is the interest on a loan for 6 months with a 9% interest rate when you borrow \$2,000? P = 2,000 r = 9% t = 6 months 2,000 • 0.09 • 0.5 ……..0.09 ……..6/12 ……..0.5 The interest is \$90 At the end of the 6 months, how much did your loan really end up costing you? Total cost = Principle + Interest T = P + I 2, = \$2,090 Your loan really ended up costing you \$2,090

The bank is going to loan you \$25,000 for you to buy a new car
The bank is going to loan you \$25,000 for you to buy a new car. The loan will be for 5 years. What interest rate did they use if you end up paying \$5,000 in interest? I = \$5, P = 15,000 r = ? t = 5 years 5,000 = 25,000 • ? • 5 5,000 = 125,000 • ? 5,000/125,000 = ? ? = 0.04 The interest rate was 4%

Simple Interest I = P = r = t =
The amount of ________ either being borrowed or saved r = A _____, that will need to be converted into a ____________ t = The amount of ________ in ________

The interest is \$ P = r = t =
What is the interest on a car loan for 5 years with a 6% interest rate when you borrow \$15,000? P = r = t = The interest is \$ At the end of the 5 years, how much did your car really end up costing you? Total cost = T = + ______ + _______ = \$__________ Your car really ended up costing you \$_______

The interest is \$ P = r = t = T = ____ + _____
You are going to the bank and depositing \$ The bank is going to give you an interest rate of 1.7% You are going to leave your money in the account for 4 years P = r = t = The interest is \$ At the end of the 4 years, how much money do you really have in your bank account? Total cost = ___________ + ____________ T = ____ + _____ ________ + _______ = \$_________ Your bank account now has \$_________ in it.

The interest is \$ P = r = t =
What is the interest on a loan for 6 months with a 9% interest rate when you borrow \$2,000? P = r = t = The interest is \$ At the end of the 6 months, how much did your loan really end up costing you? Total cost = ___________ + __________ T = _____ + ____ ________ + _______ = \$_________ Your loan really ended up costing you \$______

The bank is going to loan you \$25,000 for you to buy a new car
The bank is going to loan you \$25,000 for you to buy a new car. The loan will be for 5 years. What interest rate did they use if you end up paying \$5,000 in interest? I = P = r = t = = • • = • / = ? ? = The interest rate was _____%

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