Vocabulary
What does the t stand for in the interest formulas?
Time, in years
What is the simple interest formula?
I = prt
What is the interest given the following information?
I = p= $1000
r= 5% t = 3 years
What is the total money in the account after 3 years?
$150
$1,150
What is the account balance:
$1,500 at 7% compounded annually for 3 years
$1,837.56
Ben deposited $6,500 in a simple interest account that pays 2.8% interest annually. If Ben leaves the money in the account for 12 years, how much interest will he earn?
$2,184
What does the r stand for in the interest formulas?
Rate (As a decimal)
What is the compound interest formula?
A = p(1 + r/n)nt
What is the interest given the follwing informationa?
I = p = $4,000
r = 3% t = 4 years
What is the toal money owed after 4 years?
$480
$4,480
What is the account balance:
$18,000 at 9% compounded annually for 6 years
$30,187.80
Kevin wants to buy a leather jacket listed for $190 but he does not have any cash on hand. If he puts the purchase on his credit card that charges 14.75% compounded interest and does not make a payment for 6 months, how much interest will he end up paying on the jacket?
$13.53
What does the p stand for in the interest formulas?
Principle (amount of $ invested or borrowed)
If the rate is 4.5%, how should that be written in for the interest formulas?
.045 or 4.5/100
What is the interest given the following information?
I = p= 210 r = 8% t= 7 years
What is the total money in the account after 7 years?
$117.60
$327.60
What is the account balance:
$12,700 at 8.8% compounded annually for 4 years.
What is the interest only?
$17,795.87
$5,095.87
Viv borrows $1,500 from her uncle for 9 months at 5%. What’s the total amount she’ll pay back to her uncle?
$1,556.25
What is interest?
The (additional) money paid/earned for money borrowed/invested.
How would you write 6 MONTHS in the interest formula?
1/2 or 0.5
What is the total money owed after 3 years?
I = p= 35,800
r= 8.2% t= 3 years
$44,606.80
What is the interest owed only:
$21,000 at 13.6% compounded annually for 4 years
$13, 972.98
Jeremy borrowed $96,300 at 3% compounded annually for 8 years. How much total money is this?
$121,989.96
What does the A stand for in the compound interest formula?
The Account Balance (The total amount of money in the account)
If the rate is 4 3/8 % how should that be written in the interest formula?
.04375 or 4.375/100
What is the total money in the account after 3 months?
I= p= $7,400 r= 10.5% t= 3 MONTHS
$7,594.25
What is the interest owed only:
$15,000 at 7.5% compounded annually for 5 years
$6,534.44
If you deposited $500 for four years at 6% annual interest, compounded monthly, how much money would you have saved?
$635.24