Simple Interest (MAT 142) Simple Interest.

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Presentation transcript:

Simple Interest (MAT 142) Simple Interest

Vocabulary present value principal future value interest rate Simple Interest (MAT 142) Vocabulary present value principal future value interest rate simple interest loan amount maturity value add-on interest average daily balance

Formulas Simple Interest Future Value Formula Simple Interest (MAT 142) Formulas Simple Interest Future Value Formula

Simple Interest (MAT 142) Find the future value of $3670 deposited at 2¾% annual simple interest for 7 years.

Simple Interest (MAT 142) How much must be deposited now at annual simple interest so that in 2 years and 7 months an account will contain $3000?

Ray and Teresa buy a bedroom set at Fowler’s Furniture for $3,700 Ray and Teresa buy a bedroom set at Fowler’s Furniture for $3,700. They put $500 down and finance the rest through the store at 9.8% add-on interest. If they agree to make 36 monthly payments, find the size of each payment.

The activity on Denise Sears account for one billing period is shown below. Find the average daily balance and the finance charge if the billing period is March 1 through March 31. The previous balance was $157.14, and the annual interest rate is 21%. March 5 payment $25.00 March 17 tools $36.12