Interest

Vocabulary

100

How many times a year is annually?

1

200

How many times a year is semi - annually?

2

300

What does the P stand for in the interest formulas?

Principal

400

What is interest? 

Money you make from a bank or investment that pays a certain amount depending on the rate and amount of money invested

500

How many times a year is quarterly?

4

Equations

100

What is the simple interest formula?

I = Prt

200

What is compound interest?

Interest on Interest

300

If the rate is 4.5%, how should that be written in for interest formula?

.045

400

compounding every 6 months is the same as ...

compounding semi-annually

500

What does compounded quarterly mean?

Compounded 4 times per year

Simple Interest Formula

100

I = 

P= $1000

R= 5%

T = 3 years

150

200

I = 

P = $4,000

R = 3%

T = 4 years

$480

300

I = 

P= 210

R = 8%

T= 7 years

$117.60

400

I = 

P= 35,800

R= 8.2%

T= 3 years

$8,806.60

500

I=

P= $7,400

R= 10.5%

T= 3 MONTHS

$194.25

Compound Interest Formula

100

$1,500 at 7% compounded annually for 3 years

$1,837.56

200

$18,000 at 9% compounded semiannually for 6 years

$30,525.87

300

$12,700 at 8.8% compounded annually for 1 year

$13,817.60

400

$21,000 at 13.6% compounded quarterly for 4 years

$35,854.85

500

$15,000 at 7.5% compounded monthly for 5 years

$21,799.42

Random

100

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

200

Kevin buys a leather jacket listed for $190. He receives a 15% discount at the register. What is the new price of the leather jacket?

$161.50

300

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

400

Jeremy borrowed $96,300 at 3% compounded annually for 8 years.

$121,989.96

500

If you deposited $500 for four years at 6% annual interest, compounded monthly, how much money would you have saved?

$635.24