Simple and Compound Interest

Front

Find the total amount of interest to the nearest cent if the interest is compounded annually. $2750 at 8% for 2 years.

Back

$457.60

Front

What is the compound interest formula?

Back

A = P(1+r)^t

Front

The compound interest formula is: A = P(1 + r)^t

Back

The total amount of money after a certain amount of time

Front

Principal = $350. Interest rate = 2.5% Time = 3 years. How much simple interest?

Back

$26.25

Front

What does the t represent in the simple interest formula I=Prt?

Back

Time

Front

The principal in the simple interest formula I=Prt is _________________.

Back

the amount of money borrowed or deposited

Front

Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?

Back

$1392

Front

Leroy borrowed $1500 at an annual simple interest rate of 12% and paid $270 in interest. For what time period did Leroy borrow the money?

Back

18 months

Front

How to convert time in months to years for simple interest calculation?

Back

Divide the months by 12.

Front

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

Back

compound; highest