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Lesson 8-6 Pages 358-360 Simple Interest Lesson Check 8-5.

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Presentation on theme: "Lesson 8-6 Pages 358-360 Simple Interest Lesson Check 8-5."— Presentation transcript:

1 Lesson 8-6 Pages 358-360 Simple Interest Lesson Check 8-5

2 What you will learn! How to solve problems involving simple interest.

3 Simple interest Principal

4 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.

5 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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7 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

8 I = 1,500 x.04 x 3 I = 180 $180

9 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

10 I = prt I = 1,500 x.04 x 2.5 I = 150 $150

11 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

12 I = prt I = 2,000 x.09 x 2/3 I = 120 $120

13 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

14 I = prt I = 30 x.08 x 1/2 I = 1.20 $30 + 1.20 = $31.20

15 Page 359 Guided Practice #’s 3-7

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17 Pages 358-359 with someone at home and study examples! Read:

18 Homework: Page 360 #’s 8-20 all #’s 24-29 Lesson Check Ch 8

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20 Link to Lesson 8-6 Review Problems

21 Page 584 Lesson 8-6

22 Lesson Check Ch 8

23 Study Guide and Review Pages 362-364 #’s 1-47 (Odd answers in back of book)

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30 Prepare for Test! Page 365 #’s 1-20 Lesson Check Ch 8

31 A ratio that compares the change in quantity to the original amount! I=prt

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34 Prepare for Test! Pages 366-367 #’s 1-16

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