Docstoc

how to calculate simple interest

Document Sample
how to calculate simple interest Powered By Docstoc
					SIMPLE INTEREST

Simple interest is the amount
paid for the use of money.
FORMULA

 I=PRT
  INTEREST EQUALS
• PRINCIPAL - the amount of
  money invested or borrowed
• RATE - in the annual interest
• TIME - in years
 SAVINGS ACCOUNT
• You can also use the
  formula to find the simple
  interest when you deposit
  money in a savings
  account
          INVESTING
• Angie has $500 in a savings
  account that pays 5% simple
  interest.
• How much interest will she earn in 2
  years?
• How much interest will she earn if she
  withdraws the money after 9 months?
 HOME IMPROVEMENT

• If you borrow $5,000 at
  11.5% for 3 years to make
  home repairs and
  improvements. How much
  will you have to pay back,
  including interest?
DISCOUNT & SALES TAX
–WHEN AM I EVER GOING
 TO USE THIS?
–Knowing how to calculate
 discounts and sales tax will help
 you determine how much money
 you’re actually spending when
 you shop.
   MONEY MATTERS
• A $53 racquet at
  Sports Galore is on
  sale for 20% off the
  regular price.
• What is the amount
  of the discount?
• What is the sale
  price ?
 PERCENT OF CHANGE
• The original cost of
  roses before
  Valentines Day was
  $36, but they are
  now on sale for
  $18.
• What is the percent
  of decrease of the
  roses?                 Created By:Lynn Husen & Pat Layton
                         Maury Middle
                         Dandridge, TN