# how to calculate simple interest

Document Sample

```					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

```
DOCUMENT INFO
Shared By:
Categories:
Stats:
 views: 106 posted: 1/4/2009 language: English pages: 9