7th 10.4A Calculating Interest

Match each variable with the correct definition.

• principal

• t

• interest earned

• r

• time

• P

• account balance

• I

• rate

• A

When using the the simple interest or compound interest formula, time should be in _____.

• weeks

• months

• years

• decades

Mrs. Baxter deposits $2,000 in an account that earns 5% simple interest. How much is Mrs. Baxter's investment worth after 8 years?

Which formula will you use to solve this problem?

Mrs. Baxter deposits $2,000 in an account that earns 5% simple interest. How much is Mrs. Baxter's investment worth after 8 years?

Complete the formula for this problem?

I = p ⋅ r ⋅ t

I = ​ (a)   ⋅ ​ (b)   ⋅ ​ (c)  

• 2,000
• 0.05
• 8

Mrs. Baxter deposits $2,000 in an account that earns 5% simple interest. How much is Mrs. Baxter's investment worth after 8 years?

Answer: $____

Mathematical Equivalence

ON

Joey made a deposit into an account that earns 6% simple interest. After 3 years, Joey had earned $400. How much was Joey's initial deposit?

Which formula will you use to solve this problem?

Joey made a deposit into an account that earns 6% simple interest. After 3 years, Joey had earned $400. How much was Joey's initial deposit?

Which formula should be used to solve this problem?

Joey made a deposit into an account that earns 6% simple interest. After 3 years, Joey had earned $400. How much was Joey's initial deposit?

Answer: $____

Mathematical Equivalence

ON

Coach Cliffman made a deposit of $1,800 into an account that earns 2% annual compound interest. Find the account balance and the amount of interest that Coach Cliffman earned after 3 years?

Which formula will you use to solve this problem?

Coach Cliffman made a deposit of $1,800 into an account that earns 2% annual compound interest. Find the account balance and the amount of interest that Coach Cliffman earned after 3 years?

Which formula should be used to solve this problem?