Simple Interest and Compound Interest.

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Simple and Compound Interest

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Presentation transcript:

Simple Interest and Compound Interest

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

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?

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

Compound Interest (MAT 142) When Mike Jones was born, his grandparents deposited $5,000 into a special account for Mike’s college education. The account earned 7¼ % interest compounded daily. How much will be in the account when Mike is eighteen?