VOCABULARY
What does "t" represent when you find the interest owed when you borrow money?
time
Emilio's father borrows P1,200 from the bank for a riding lawn mower. The interest rate is 8% per year, how much simple interest will he pay if he if he takes 2 years to repay the loan?
The interest is P192.00
P=$1050, r=4.6%, t=2 years
$96.60
Change 69% into a decimal.
0.69
If 1,000 x 87 x C = 174,000. What is the value C?
C = 2
It is the amount paid or earned for the use of money.
Simple Interest (Is)
Raini has P750.00 in a savings account that pays 3% simple interest. How much interest will he earn in 9 months?
The interest is P16.88
P=$250, r=2.85%, t=3 years
$21.38
Change 1.5% to a decimal.
0.015
A sound system has a regular price of $249. Find the total cost if it is on sale for 50% off and the sales tax is 5.75%.
$131.66
It is the amount of money deposited or invested.
Principal (P)
Cory charged a $600 TV on his credit card with an interest rate of 21%. If he has no other charges on the card, how much will he owe after one month?
$610.50
P=$500, r=3.75%, t=1 year
$18.75
Change 2.85% into a decimal.
0.0285
Multiple Choice.
A baseball cap at the mall costs $14.95. It is on sale for 30% off. What is the sale price to the nearest cent?
A)$4.49 B)$10.47 C)$10.50 D)$10.65
B)$10.47
It is the annual interest rate written as a decimal.
rate (r)
Marcus has $1,800 from his summer job to invest. Suppose, he invests the $1,800 for 2 years and earns $144. What is the rate of interest?
0.04 or 4%
P=$3,000, r=5.5%, t=2 years
$330
Change 6 6/12% to a decimal
0.065
What does Is=Prt stand for?
Simple Interest=principal x rate x time