Simple Interest
P=15,000 r=5% t=5 years
3,750
Solve for the future value.
P=18,150 r=10% t=3 years
$23,595
A=$6,000 r=2.5% t= 2 years
You deposit $3,000 into a bank account, which has a rate of 2.2%. Find the interest at the end of 2 years.
$132
P=25,375 r=0.19% t=8 years
385.70
Solve for the future value.
P=9,350 r=9.9% t=24 months
$11,201.30
A=$14,000 r=6.5% t= 6 years
$10,071.94
What does the "A" stand for?
Accumulated, total money, Interest plus principal
A loan of $5,350 has been made at 5.5% for 9 months. Find the loan's future value.
$5,570.69
Solve for the rate
P=5,000 I=250 t=2 years
2.5%
Solve for the future value.
P=38,365 r=11.45% t=78 months
$66,918.15
A=$5,000 r=1.45% t= 9 months
$4,946.21
What does the "r" stand for?
Rate
You are saving for a trip. A bank offers you a CD that pays a simple interest rate of 5.5%. How much must you put in this CD Now in order to have $5,000 for a graduation trip in 2 years?
$4,504.50
Solve for the time (round to the nearest tenth)
P=22,000 r=4% I=12,250
13.9 years
Solve for the principal Rounded to the nearest hundredths)
A=38,000 r=12.09% t=62 months
$23,389.65
How much should you put in an investment paying a simple interest rate of 3% if you need $4,000 in 6 months?
$3,940.89
What does the "t" stand for?
Time
Suppose you spend $5.95 every day for coffee.
a. How much do you spend on this item in a year?
b. If you invest your yearly spending on coffee in an account with a rate of 2%, how much would you have after one year?
a. $2,171.75
b. $2,215.19
Solve for the principal Rounded to the nearest hundredths)
I=18,000 r=2.9% t=56 months
133,004.93
Solve for the rate (round to the nearest tenth of a percent)
P=3,500 A=3,655 t= 5 years
r=0.9%
A bank offers a CD that pays a simple interest rate of 1.9%. How much must you put into this CD now in order to have $8,000 for a trip to Australia in four years?
$7,434.94
What does the "P" stand for?
Principal
Your borrow $3,500 from a friend and promise to pay back $3,655 in 3 months. What simple interest rate will you pay?
(Round to the nearest tenth of a percent)
17.7%