Simple Interest
Find the interest on a loan of $3,000 with an interest rate of 7% after 1 year.
$210
Principal: $300
Rate: 8%
Time: 2 years
$48
The rate usually is given as a _____ and converted into a _____.
Percentage, decimal
You deposit $2,000 in a savings account at Hometown bank, which has a rate of 6%. Find the value of the deposit at the end of the first year when compounded annually.
$2,120
Find the interest on a loan of $3,000 with an interest rate of 4% after 3 years.
$360
Principal: $80,000
Rate: 6%
Time: 2 years
$9,600
What is the simple interest formula?
i=Prt
OR
i=(PRt)/100
A man invests $10, 000 in an account that pays 8.5% interest per year, compounded quarterly. What is the amount of money that he will have after 3 years?
$12,870.19
A student took out a simple interest loan for $1,800 for two years at a rate of 8% to purchase a used car. what is the interest on the loan?
$288
Principal: $830
Rate: 3%
Time: 4.3 years
$107.07
If a deposit is compounded quarterly, how many times is it compounded per year?
4
Interest Rate: 2%
Starting Balance: $128
Time Passed: 7 years
Compounded annually
$147.03
A loan of $1060 has been made at 6.5% for three years. Find the loans future value.
$1,266.70
Principal: $1,160
Rate: 7.2%
Time: 270 days (Hint: 't' has to be in terms of years, there are 365 days in one year)
$62.64
The variable 't' stands for ____ and is given in terms of the number of _______.
Time, years
Principal: $18,800
Time: 4 years
Compounded semiannually
Rate: 5.3%
$23,175.52
A loan of $ 2040 has been made at 7.5% for 6 months. Find the loans future value.
$2116.50
Principal: $391,000
Rate: 5%
Time: 300 days (Hint: 't' has to be in terms of years, there are 365 days in one year)
$16,226.50
What is the definition of interest?
The rate at which a deposit/loan will gain value over time
Interest Rate: 7% annually Starting Balance: $131 Time Passed: 7 years
$210.36