Vocabulary
I=Prt
What does 'r' stand for?
Rate (as a decimal)
You put $500 in a savings account. The account earns 6% simple interest per year for 3 years.
What is the principal?
$500
Calculate the interest and new balance.
$1850 at 5% for 6 months.
Interest=$46.25
New balance=$1896.25
$1850 at 5% for 6 months.
Convert the rate and time.
0.05 and 1/2 years
I=Prt
What does 'P' stand for?
Principal
$5200 at 6.5% for 5 years.
What is the time?
5 years
Calculate the interest and new balance.
You put $500 in a savings account. The account earns 6% simple interest per year for 3 years.
Interest=$90
New balance=$590
$2500 at 6% and 24 months.
Convert the rate and time.
0.06 and 2 years
I=Prt
What does 't' stand for?
Time (in years)
You put $500 in a savings account. The account earns 6% simple interest per year for 3 years.
What is the time?
3 years
Calculate the interest and new balance.
$700 at 8% for 6 months.
Interest=$28
New balance=$728
$2000 at 3% for 30 months.
Convert the rate and time.
0.03 and 2.5 years
What does Principal mean in reference to I=Prt?
Original amount of money deposited or borrowed.
$700 at 8% for 6 months.
What is the rate?
Rate is 8%. Also accept 0.08.
Calculate the interest and new balance.
$2000 at 3% for 30 months.
Interest=$150
New balance=$2150
$100 at 8.96% for 48 months.
Convert the rate and time.
0.0896 and 4 years
What is interest? Include an example.
Interest is money paid or earned for the use of money. Examples include loans and savings accounts.
$5400 at 8% for 36 months.
What is the time in years?
3 years
Calculate the interest and new balance.
$1800 at 4% for 50 months.
Interest approximately $300
New balance approximately $2100
$1800 at 4% for 50 months.
Convert the rate and time.
0.04 and 4.17 years