Simple and compound Interest 2-8

Front

The principle in the simple interest formula I=Prt is:

Back

the amount of money borrowed or deposited

Front

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Back

$1,200

Front

Julie borrowed $3,500 for 3 years at 7½% simple interest rate. How much interest is that?

Back

$787.50

Front

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

Back

12

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

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

Back

Divide the months by 12.

Front

Principal = $800
Interest Rate = 3.5%
Time = 6 months
Find the interest earned.

Back

14

Front

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?

Back

$831.10

Front

What does the A represent in the compound interest formula A = P(1 + r)^t?

Back

The total amount of money after a certain amount of time.

Front

$1,000 invested at 16% interest, compounded annually, for five years. What is the ending balance?

Back

$2,100.34