Vocab
What is simple interest?
The money earned on the principal amount deposited
Write 5% as a decimal
0.05
Find the total interest on $100 at 5% simple interest for 1 year.
$5
(I = 100 x 0.05 x 1)
Cora put $4,000 in a college savings account with a 5% simple interest rate. What will be the total value of the account after 5 years?
$5,000
(I = 4000 x 0.05 x 5
$4,000 + $1,000 = $5,000)
What is the simple interest formula?
I = prt
Write 12% as a decimal
0.12
Find the total interest on $200 at 10% simple interest for 2 years.
$40
(I = 200 x 0.10 x 2)
A deposit earns $102 after 36 months with a simple interest rate of 5%. What is the principal amount?
$680
(102 = (p)(0.05)(3)
102 = 0.15p
680 = p
What is the original amount of money deposited called?
Principal
In decimal form, how many years is 6 months?
0.5 years
Find the total interest on $500 at 4% simple interest for 3 years.
$60
(I = 500 x 0.04 x 3)
When Adam started his career, he placed $500 in a savings account with a 2.7% simple interest rate. What will be the total value of the account when he retires after 30 years?
$905
(500 x 0.027 x 30 = 405
405 + 500 = $905)
What does the "r" represent in the simple interest formula?
The rate (written as a decimal)
If a student writes down 0.7 for a 7% interest rate, are they correct? Why or why not?
No, they are not correct. The student moved the decimal point incorrectly
Ms. Allen deposits $800 at 5% simple interest rate for 2 years. Find the total interest.
$80
(I = 800 x 0.05 x 2)
Caroline won $250,000 in a lottery. After paying $96,000 in taxes, she placed the remaining amount in a savings account with a 2% simple interest rate. How much interest will the account earn after 6 months?
$1,540
($250,000-$96,000=$154,000
I = 154,000 x 0.02 x 0.5)
What is total value?
Total value is the principal plus the simple interest
How many years is 42 months?
3.5 years
A $1,595 deposit for 10 years at a simple interest rate of 8%. What is the total interest and total value?
Total Interest: $1,276
Total Value: $2,871
Liam opened a savings account with a $400 deposit and a simple interest rate of 7.5%. If the balance of the account is now $670 and there were no deposits or withdrawals, how long ago did he open the account?
9 years
(Total Interest = $270 -> 670-400
270 = 400 (0.075)(x)