Notes Over 7 – 8 1. Suppose you deposit $1000 in a savings account that earns 6% per year. Find the interest earned in two years. Simple Interest Formula.

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Presentation transcript:

Notes Over 7 – 8 1. Suppose you deposit $1000 in a savings account that earns 6% per year. Find the interest earned in two years. Simple Interest Formula I = prt = (principal) (rate) (time) Find the total of the principal plus interest..

Notes Over 7 – 8 2. Complete the table. $400, 5%, for 4 years Simple Interest Formula I = prt = (principal) (rate) (time) Principle at Beginning of year InterestBalance Year 1: $400 Year 2: Year 3: Year 4:

Notes Over 7 – 8 The same thing can be found by using the compound interest formula: Simple Interest Formula

Notes Over 7 – 8 3. Find the balance compounded semiannually. Deposit: $900, Int. Rate: 2%, Time: 3 years Simple Interest Formula

1. $200, 7%, 2 years Find the simple interest. Pg – 8 #1 – 6, 8 – $870, 6%, 9 months

3. $495, 8%, 2 years - annually Find the balance. Pg – 8 #1 – 6, 8 – 18

4. $1,280, 13%, 3 years - annually Find the balance. Pg – 8 #1 – 6, 8 – 18

5. $2,000, 5%, 2 years - semiannually Find the balance. Pg – 8 #1 – 6, 8 – 18

6. $15,600, 10%, 3 years - semiannually Find the balance. Pg – 8 #1 – 6, 8 – 18