Vocabulary
The initial amount of money deposited in the bank
Principal
Simple interest grows at a (constant/different) rate every year.
Constant
Simplify 45/43
42
Simplify 52(57)
59
Simplify (x2)3
x6
The number or variable before an exponent
base
What shape is the graph of compound interest? (draw a sketch)
Curved
Simplify x/(5x2)
1/5x
Simplify (xy2)(x5y)
x6y3
Simplify (3a2b)3
27a6b3
In the simple interest formula, I=Prt, what does r stand for?
rate
If you earned $15 of simple interest in 1 year, how much interest will you earn in 10 years?
$150
Simplify (7283)/(7382)
8/7
Simplify 25(2-2)
23
Simplify (2x2y5)3
8x6y15
_______ notation is used to rewrite very large and very small quantities in simpler form
For example: 4,500,000,000
Scientific
Susan deposits $1500 in the bank with a simple interest rate of 1.3% per year. How much interest will she earn after 1 year? (I=prt)
$19.50
Simplify (5m6n)/(m3n3)
5m3/n2
Simplify 2x11(xy11)
2x12y11
Simplify (4x)-2(8x4)
(1/2)x2 or 0.5x2
The type of interest that is based on the principal and all the interest earned at a specific time
Compound
Sebastian has $1200 in the bank. He is earning 3.5% simple interest each month. How much interest will he earn in 5 years? (I=prt)
$2520
Simplify (10a3b)/5(ab)3
2/b2
Simplify 10xy3(8x5y3)
80x6y6
Simplify 8a2(8a2b)0
8a2