1. 6.6 Simple/Compound interest
Objective: The objective today is for the students to become familiar with how to find simple and compound interest. They will gain a real-life experience with interest problems.

2. Information Interest: money earned or paid.
Principal: money deposited/borrowed
Simple interest: money earned or paid on principal
Balance: sum of principal and interest.
Simple interest formula:
I = Prt
I = interest
P = principal
R = rate
T = time

3. Find simple interest
A $1000 bond earns 6% interest. What’s the interest after 4 years.
Find the interest of P = $500, r = 7%, t = 4yrs

4. Find simple interest Find the interest of P = $2500, r = 3%, t = 7yrs
Loan brother $400 and charge him 10%. Said he pay you in a year? Find payment of interest.

5. Compound Interest P = $600, r = 8.75%, t = 2yrs
Compound interest: interest earned on principal and interest from previous year.
To find compound interest.
1. Find simple interest balance.
2. Take answer and run simple interest again.
3. Repeat
P = $600, r = 8.75%, t = 2yrs
P = $1750, r = 2.3%, t = 2yrs

6. Compound interest – st P = $2200, r = 7%, t = 3yrs
Use compound interest to tell me which account will have greater balance when matured
Account A Account
P = $ P = $150
R = R = 6.5%
T = 3yrs T = 2yrs

7. Wrap-up Questions/Comments Problems:
Objective: The objective today is for the students to become familiar with how to find simple and compound interest. They will gain a real-life experience with interest problems.