Thinking Mathematically Consumer Mathematics and Financial Management 8.2 Simple Interest.

Slides:

Advertisements

Similar presentations

Math in Our World Section 8.2 Simple Interest.

Advertisements

Simple and Compound Interest

Simple Interest. is money added onto the original amount saved (earned) or borrowed (charged). Simple Interest.

Simple Interest I =Prt I = Interest P = Principle r = rate t = time

Simple Interest Essential Skill: Explicitly Assess Information and Draw Conclusions.

Simple Interest 7th Grade Math.

Simple and Compound Interest. Simple Interest Interest is like “rent” on a loan. You borrow money (principal). You pay back all that you borrow plus more.

Mathematics of finance

Simple Interest Formula I = PRT.

Simple Interest 21.6 Vocabulary Principal = the original amount of money that is saved or borrowed. Simple interest = a fixed percent of the principal.

Thinking Mathematically Consumer Mathematics and Financial Management 8.1 Percent.

Thinking Mathematically

Chapter I Mathematics of Finance. I-1 Interest I-1-01: Simple Interest Let: p = Principal in Riyals r =Interest rate per year t = number of years → The.

Introducing the Mathematics of Finance

Simple and Compound Interest Everybody uses money. Sometimes you work for your money and other times your money works for you. For example, unless you.

7-8 simple and compound interest

Simple and Compound Interest

3-3 Example 1 Find the simple interest earned on an investment of $500 at 7.5% for 6 months. 1. Write the simple interest formula. I = prt Lesson 3-3 Example.

Chapter 3 Mathematics of Finance Section 1 Simple Interest.

Using Percents to Solve Problems

Learning Objectives for Simple Interest

1 Simple Interest By: Dilshad Akrayee. 2 Definition  Simple interest is interest that is computed on the original sum.  Formula: Principal amount *

Simple Interest.

April 8, 2010Math 132: Foundations of Mathematics 8.1 Homework Solutions 453: 47, 49, 50, Taxes paid = $1008; Total Cost = $17, Discount =

Lesson 5-8 Simple Interest.

Interest and Discounts

Simple Interest Compound Interest. When we open a savings account, we are actually lending money to the bank or credit union. The bank or credit union.

5 Minute Check Find the price to the nearest cent. Complete on the back of your homework. 1. $60; with a 60% discount 2. $40; with 7% tax 3. $199; with.

Interest (ing) Notes How to Calculate Simple Interest 2/11/10 Pre-Algebra.

Vocabulary Principal: An amount of money borrowed or loaned. Interest: A charge for the use of money, paid by the borrower to the lender. Annual Percentage.

1 Press Ctrl-A ©G Dear2008 – Not to be sold/Free to use Loan Repayments Stage 6 - Year 12 General Mathematic (HSC)

Thinking Mathematically

3.1 Simple Interest Definition: I = Prt Definition: I = Prt I = interest earned I = interest earned P = principal ( amount invested) P = principal ( amount.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall. Chapter 5 Percents.

Lesson 7.6 Concept: How to find simple interest Guidelines: When you compute simple interest for a time that is less than 1year, write the time as a fraction.

© 2010 Pearson Prentice Hall. All rights reserved. CHAPTER 8 Consumer Mathematics and Financial Management.

Simple Interest Finding Principle, Rate, & Time.

1. Warmups 2. Check HW Find (a) the simple interest and (b) the amount paid for the loan. 1.$12,000 borrowed at 4.9% for 4 years. 2.$18,500 borrowed at.

Section 1.2 The Term of a Loan 1 Copyright © 2011 Department of Mathematics, Penn State University.

Simple Interest. Simple Interest – * the amount of money you must pay back for borrowing money from a bank or on a credit card or * the amount of money.

Simple Interest Formula I = PRT. I = interest earned (amount of money the bank pays you) P = Principle amount invested or borrowed. R = Interest Rate.

Compound Interest. A = New balance after interest P = Principle amount invested or borrowed. R = Interest Rate usually given as a percent (must changed.

Ch 9 Simple Interest Simple Discount Notes. Notes Notes are short term loans.  Simple Interest Notes Section 1  Simple Discount Notes This section…

Simple Discount Notes Section 9.3. Terms used with Discount Notes Proceeds  What the borrower gets Discount  What the bank gets Face Value  Maturity.

Discovering Finance Dr. Hassan Sharafuddin Discovering Mathematics Week 7 Discovering Finance MU123.

6.6 Compound Interest. If a principal of P dollars is borrowed for a period of t years at a per annum interest rate r, expressed in decimals, the interest.

Simple and Compound Interest Simple Interest I = Prt Compound Interest A = P(1 + r)

Lesson 9.7: Simple Interest ALCOS: 3, 5, 6 Objective: Students will use the simple interest formula to calculate simple interests.

Bellringer Calculate the Simple Interest for #s 1 and 3 and the Total cost for #2. 1.$1800 at 3.2% for 4 years. 2. $17250 at 7.5% for 6 years. 3. $3,650.

Compound Interest. A = New balance after interest P = Principle amount invested or borrowed. R = Interest Rate usually given as a percent (must changed.

Exercise Write 5% as a decimal Write 6.5% as a decimal Exercise.

Warm Up (-2)(5) (-7) 4.-50/(-5) 5.Find 30% of is what percent of 100?  34.

Simple and Compound Interest

Simple Interest.

Mathematics of Finance

Choose “Simple Savings Calculator” Under the Picture of the Couple Exploration Time Work through page 10 in packet with the Chromebooks BANKRATE.COM.

CHAPTER 8 Personal Finance.

Section 9.3 Simple Discount Notes.

“Interest rate formulas”

7.3 Notes Simple Interest.

Chapter 3: Consumer Math

Simple Interest.

I = PRT I = P x R x T nterest rincipal ate ime Simple Interest

Compound Interest.

Calculating Interest Interest = the cost of ___________

Day 86 – Introduce the power of interest

CHAPTER 8 Personal Finance.

Review: Mini-Quiz Vector Addition

Math in Our World Section 8.2 Simple Interest.

Compound Interest.

Presentation transcript:

Thinking Mathematically Consumer Mathematics and Financial Management 8.2 Simple Interest

Calculating Simple Interest Interest =(principal)(rate)(time) I = Prt The rate, r, is expressed as a decimal when calculating simple interest. Exercise Set 8.2 #5 P = $5000, r = 8.5%, t = 9 months, find the simple interest.

Future Value Future value (A) – amount due at the end of a loan Present value (P) – the principal borrowed A = P(1 + rt) Exercise Set 8.2 #11, 15, 21 P = $26,000, r = 9.5%, t = 5 years, find the future value. P = $2000, A = $2150, t = 1 year, what is the interest rate? A = $6000, r = 8%, t = 2 years, what must the initial principal be?

Discounted Loan Interest is deducted up front the loan amount

Thinking Mathematically Consumer Mathematics and Financial Management 8.2 Simple Interest