Download presentation

Presentation is loading. Please wait.

Published byAnabel Madison Bradley Modified over 7 years ago

1
Transparency 8 Click the mouse button or press the Space Bar to display the answers.

2
Example 8-3d Objective Solve problems involving simple interest

3
Example 8-3d Vocabulary Interest The amount of money paid or earned for the use of money

4
Example 8-3d Vocabulary Principal The amount of money invested or borrowed

5
Lesson 8 Contents Example 1Find Simple Interest Example 2Find the Total Amount Example 3Find the Interest Rate

6
Example 8-1a Find the simple interest for $2,000 invested at 5.5% for 4 years. Write the simple interest formula. 1/3 Replace p with amount invested I = 2,000 Replace r with rate which is in % I = 2,000 5.5% Replace t with time in years I = 2,000 5.5% 4 Use calculator to solve

7
Example 8-1a Find the simple interest for $2,000 invested at 5.5% for 4 years. Enter 2,000 Answer: I = $440 1/3 I = 2,000 I = 2,000 5.5%I = 2,000 5.5% 4 2,000 5.5 4 Enter multiplication sign Enter 5.5 Enter % % Enter multiplication sign Enter 4 Enter = = I = 440 Add dimensional analysis I = $440

8
Example 8-1b Find the simple interest for $1,500 invested at 5% for 3 years. Answer: I = $225 1/3

9
Example 8-2a Find the total amount of money in an account where $80 is invested at 6% for 6 months. 2/3 Total Amount = Interest + principle Find the total amount of money Write the interest formula Replace p with amount invested I = 80 Replace r with rate which is % I = 80 5.5% Replace t with time in years I = 80 5.5% Time is given in months and must have years so put over denominator of 12 (12 months in a year) 6 12

10
Example 8-2a Find the total amount of money in an account where $80 is invested at 6% for 6 months. 2/3 Solve using a calculator Find the total amount of money I = 80 I = 80 5.5%I = 80 5.5% 6 12 I = $2.40 Remember: Must find total amount by adding the interest to the principle Total = Principle + Interest Replace principle with 80 Total = 80 Replace interest with 2.40 Total = 80 + 2.40 Add Total = 82.40 Add dimensional analysis Total = $82.40 Answer: Total = $82.40

11
Example 8-2d Answer: Find the total amount of money in an account where $60 is invested at 8% for 3 months. Total = $61.20 2/3

12
Example 8-3a LOANS Gerardo borrowed $4,500 from his bank for home improvements. He will pay $1,260 interest for the next four years. Find the simple interest rate of the loan. 3/3 Write the simple interest formula. Replace I with interest paid 1,260 Replace p with amount borrowed 1,260 = 4,500 Define the variable for the rate Find the simple interest rate 1,260 = 4,500 r Replace t with time in years 1,260 = 4,500 r 4 Combine “like” terms Commutative Property of Multiplication allows changing order when multiplying 4,500 r 4 1,260 = 18,000 r

13
Example 8-3a LOANS Gerardo borrowed $4,500 from his bank for home improvements. He will pay $1,260 interest for the next four years. Find the simple interest rate of the loan. 3/3 Ask “what is being done to the variable?” 1,260 1,260 = 4,500 Find the simple interest rate 1,260 = 4,500 r1,260 = 4,500 r 4 4,500 r 4 1,260 = 18,000 r The variable is being multiplied by 18,000 Do the inverse on both sides of the equal sign

14
Example 8-3a LOANS Gerardo borrowed $4,500 from his bank for home improvements. He will pay $1,260 interest for the next four years. Find the simple interest rate of the loan. 3/3 Bring down 1,260 = 18,000 r 1,260 1,260 = 4,500 Find the simple interest rate 1,260 = 4,500 r1,260 = 4,500 r 4 4,500 r 4 1,260 = 18,000 r Using the fraction bar, divide both sides by 18,000 18,000 Combine “like” terms 0.07 0.07 = 1 r Use Identify Property to multiply 1 r 0.07 = r

15
Example 8-3a LOANS Gerardo borrowed $4,500 from his bank for home improvements. He will pay $1,260 interest for the next four years. Find the simple interest rate of the loan. 3/3 Find the simple interest rate 1,260 = 4,500 r 4 1,260 = 18,000 r 18,000 7% = rate 0.07 = 1 r 0.07 = r Remember: Rate is a % so multiply by 100 and add % sign Answer:

16
Example 8-3d LOANS Jocelyn borrowed $3,600 from her bank for home improvements. She will repay the loan by paying $90 a month for the next five years. Find the simple interest rate of the loan. Answer: Rate = 10% * 3/3

Similar presentations

© 2023 SlidePlayer.com Inc.

All rights reserved.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including cookie policy.

Ads by Google