Objective - To solve problems involving simple interest. If someone borrows money, what factors influence how much is paid back? Principal - How much was borrowed. Time - How long it was borrowed for. (in years) Rate - What interest was charged. (annual % rate) Amount to Payback = Principal + Interest Interest = Principal Rate Time

Joe borrows $200 from the bank at 6% simple interest for 3 years. What interest does he owe, and what is his total balance (amount to payback)? Interest Balance Balance = P + I Balance = 200 + 36 Balance = 236 Balance = $236

Juan invests $5000 in bonds for 6 months at an annual interest rate of 7%. How much interest did he earn, and what is the balance in his account? Interest Balance Balance = P + I Balance = 5000 + 175 Balance = 5175 Balance = $5175

Find the simple interest and the balance. + I Balance = P + I Balance = 2000 + 60 Balance = 15,000 + 406.25 Balance = $2060 Balance = $15,406.25

Find the annual simple interest rate.

Find the annual simple interest rate.

Find the principal amount invested.