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Lesson 8-6 Pages 358-360 Simple Interest Lesson Check 8-5
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What you will learn! How to solve problems involving simple interest.
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Simple interest Principal
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What you really need to know! Simple interest is the extra amount of money paid or earned for the use of money. To find simple interest I, use the formula I = prt.
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What you really need to know! Principal p is the amount of money deposited or invested. Rate r is the annual interest rate written as a decimal. Time t is the amount of time the money is invested in years.
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Example 1: Brandon found a bank offering a certificate of deposit that pays 4% simple interest. He has $1,500 to invest. How much interest will he earn in 3 years? I = prt
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I = 1,500 x.04 x 3 I = 180 $180
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Example 1b: Brandon found a bank offering a certificate of deposit that pays 4% simple interest. He has $1,500 to invest. How much interest will he earn in 30 months? 30 months = 2.5 years
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I = prt I = 1,500 x.04 x 2.5 I = 150 $150
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Example 2: Laura borrowed $2,000 from her credit union to buy a computer. The interest rate is 9% per year. How much interest will she pay if it takes 8 months to repay the loan? 8 months = 2/3 of a year
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I = prt I = 2,000 x.09 x 2/3 I = 120 $120
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Example 3: Alma charged a $30 handbag on her credit card with an interest rate 8%. If she has no other charges on the card, how much money would she owe after six months? 6 months = 1/2 of a year
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I = prt I = 30 x.08 x 1/2 I = 1.20 $30 + 1.20 = $31.20
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Page 359 Guided Practice #’s 3-7
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Pages 358-359 with someone at home and study examples! Read:
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Homework: Page 360 #’s 8-20 all #’s 24-29 Lesson Check Ch 8
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Link to Lesson 8-6 Review Problems
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Page 584 Lesson 8-6
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Lesson Check Ch 8
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Study Guide and Review Pages 362-364 #’s 1-47 (Odd answers in back of book)
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Prepare for Test! Page 365 #’s 1-20 Lesson Check Ch 8
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A ratio that compares the change in quantity to the original amount! I=prt
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Prepare for Test! Pages 366-367 #’s 1-16
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