2.  Jackie bought a coat that was originally priced at $50 for 40% off. If the sales tax rate is 5%, what is the total amount that Jackie paid for the coat?

3. 7 th Grade Math Grace Wilday Junior High School “Raise the Praise”

4.  TLWBAT solve problems involving simple interest by using proportional relationships to correctly calculate the interest for at least 2 out of 3 loan providers.  NJCCCS 4.1.7.A.3  Common Core 7.RP.A.3

5.  When you keep money in a savings account, your money earns interest. Interest is an amount that is charged for borrowing or using money, or an amount of money that is earned by saving money.

6.  Example:  Mary will lend Emily $100 this month if Emily pays her back $120 next month. This way Mary makes a profit of $20.  This $20 is known as interest!

7. I = P * R * T InterestPrincipal Rate of interest per year (as a decimal) ‏ Time in years that the money earns interest

8. A = P + I Interest Principal Amount Owed Or Total Amount

9.  BOOM BOOM: Move the decimal point 2 places to the left  6% = 0.06  Practice these in your notebook (1 min):  5%  24%  8%  75%

10.  Remember there are 12 months in a year (Denominator is always 12  convert to decimal)  Example: 6 months = 6/12 or ½ year = 0.5 year  Practice these in your notebook (1 min):  24 months  3 months  4 months  36 months

11.  Mrs. Ruderman will loan Ms. Eardley $500 to buy a new television. Ms. Eardley must pay 5% interest and return the money in 6 months. How much interest will Ms. Eardley pay?  Interest rate (R):  Time(T):  Principal(P):  Now multiply it all to find the interest(I)!

12. Steven Spielberg deposits $10,000 in an account that earns 8% simple interest. How long will it take for the total amount in his account to reach $12,000?  Interest (I):  Principal (P):  Interest rate (R):  Time(T):

13. Mariah deposits $7,500 and earns $3,900 over a period of 8 years. What is the simple interest rate?  Interest (I):  Principal (P):  Interest rate (R):  Time(T):

14. Mr. Figueroa deposits $4,500 in an account that earns 6% simple interest. What will be the amount in his account after 5 years?  Interest (I):  Principal (P):  Interest rate (R):  Time(T):  Amount Owed (A) = Interest (I) + Principal (P)

15. Derek deposits $5,000 in an account that earns 6% simple interest. How long will it take before the total amount is $6,000?