1. Simple Interest
and
Compound Interest

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

3. Simple Interest (MAT 142)
Find the future value of $3670 deposited at 2¾% annual simple interest for 7 years.

4. 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?

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

6. 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?