Simple Interest

Simple Interest

100

P=15,000     r=5%     t=5 years

3,750

200

P=25,375     r=0.19%     t=8 years

385.70

300

Solve for the rate

P=5,000     I=250     t=2 years

2.5%

400

Solve for the time (round to the nearest tenth)

P=22,000     r=4%     I=12,250

13.9 years

500

Solve for the principal Rounded to the nearest hundredths)

I=18,000     r=2.9%     t=56 months

133,004.93

Future Value

100

Solve for the future value.

P=18,150     r=10%     t=3 years

$23,595

200

Solve for the future value.

P=9,350     r=9.9%     t=24 months

$11,201.30

300

Solve for the future value.

P=38,365     r=11.45%     t=78 months

$66,918.15

400

Solve for the principal Rounded to the nearest hundredths)

A=38,000     r=12.09%     t=62 months

$23,389.65

500

Solve for the rate (round to the nearest tenth of a percent)

P=3,500     A=3,655     t= 5 years

r=0.9%

Present Value

100

A=$6,000     r=2.5%     t= 2 years

$5,714.29

200

A=$14,000     r=6.5%     t= 6 years

$10,071.94

300

A=$5,000     r=1.45%     t=  9 months

$4,946.21

400

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

500

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

Variables

200

What does the "A" stand for?

Accumulated, total money, Interest plus principal

300

What does the "r" stand for?

Rate

400

What does the "t" stand for?

Time

500

What does the "P" stand for?

Principal

Real World Problems

100

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

200

A loan of $5,350 has been made at 5.5% for 9 months. Find the loan's future value.

$5,570.69

300

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

400

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

500

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%