Do-Now Calculate the Final Price: Tax = Price x Tax Rate; Final Price = Price + Tax 1). A Car bought for $15,000 in PA (6% tax) 2). Latte bought in NYC (8.5% tax) for $4.50 3). Boots bought in Philly (8% tax) for $375 4). Jeans bought in Delaware for $200 (no tax) COMPLETE THE DO NOW SILENTLY, INDEPENDENTLY, & IMMEDIATELY

Objective & EU OBJECTIVE: SWBAT calculate simple interest. Essential Understanding: Unless you are born rich, you’ll have to borrow money at some point in life. This is how you calculate how much it costs. What are we doing? Why are we doing it?

Simple Interest Review A = P(1 + rt) where: A = the amount of money you have P is the Principal amount of money to be invested R = the Interest Rate R% per period. Six percent interest = 0.06; twenty percent interest = 0.20 T = Number of Time Periods. MONEY MONEY

Example: Zach makes cheddar A = P(1 + rt) Zach invests $2000 for six years at a 10% interest rate. How much will he make? PEMDAS: 21 3 A = 2000( x 6)  A = 2000(1.6) = $1,600 NOTES: Solve using PEMDAS! Remember to convert % to decimals correctly! Copy all items in red in your notes

Let’s Do Together A = P(1 + rt) 1). How much money does Chris make if he has $8000 earning 12% interest for 7 years? 2). How much money does Liana make if she earns 30% on $4000 for 9 years? 3). Is it better to take $10,000 and earn 10% for five years or 20% for three years? Copy all items in red in your notes

Let’s Do Together II A = P(1 + rt) 1). If you earn 10% for six years and finish with $16,000, how much did you start with? 2). If you start with $10,000 and finish with $14,500, and you invested it for three years, what interest rate did you receive? Copy all items in red in your notes