Definition
Interest
Set up the interest equation: $1,070 at 13% for 2 years.
I = $1,070 x 0.13 x 2
$18,000 at 1.2% for 4 years.
T = $18,864
$680.33
$255 at 15% compounded annually for 4 years
$446
What are two places where interest is found?
Buying a house, car, investing in a bank, etc...
$30,600 at 4.4% for 2 years.
$2,692.80
$19,000 at 10.8% for 2 years.
T = $23,104.00
$56,600 at 6.4% for 7 years
$975.68
$530 at 12.2% compounded annually for 4 years
$839.94
Interest = Principal x ? x time
rate
$3,500 at 10.6% for 5 years.
$1855.00
$1,450 at 1.4% for 2 years
$1,490.60
$100 at 6.2% for 3 years.
$3.29
$1,750 at 8% compounded annually for 10 years.
$3,778.12
What is the amount of money that we start with?
Principal
$550 at 2.1% for 7 years.
$80.85
$53,300 at 8.3% for 7 years
$84,267.30
$9000 at 5.3% for 2 years.
$414.75
$59,300 at 5% compounded annually for 2 years
$65,378.25
Why is it called simple interest?
We do not get interest based off of interest that we already earned.
$1,430 at 15.1% for 2 years.
$431.86
$8,200 at 7.8% for 3 years
$10,118.80
$27,900 at 11.8% for 2 years
$1,436.85
$65,316.43