Vocabulary

Principal: An amount of money borrowed or loaned. Interest: A charge for the use of money, paid by the borrower to the lender. Simple Interest: Interest paid only the principal

How do you calculate Simple Interest?

Interest = Principal Rate Time I=Prt Or I=Prt

Example 1: Simple Interest

Suppose you invest $500 for 3 years at a simple interest rate of 5% per year. How much money will you have at the end of the 3 years? I=prt I = $500 5% 3 I = $500 .05 3 I represents the interest I = $75 P represents the principal r represents the interest rate per year t represents the time in years

Example 1: Total
Suppose you invest $500 for 3 years at a simple interest rate of 5% per year. Find the total amount at the end of the 3 years. T=p+I T = $500 + $75 T = $575 T represents the total p represents the principal I represents the interest

Example 3: Simple Interest

Alex invest $5000 for 2 years at a simple interest rate of 9% per year. Find the amount of interest. I=prt I= 5000 .09 2 p=$5000 I=$900 r=9% t=2 I=?

Example 4: Total
Suppose you invest $500 for 3 years at a simple interest rate of 5% per year. Find the total amount at the end of the 3 years. T=p + I T= $900 + 500 I=$900 T= $1400 P=$500 T=?

1.) Chris invest $300 for 8 years at a simple interest rate of 12% per year. Find the amount of interest and the total amount.

2.) Ryan invests $870 for 3 years at a simple interest rate of 6% per year. Find the amount of interest and the total amount.

3.) Megan borrowed $12, 000 for 1 year at a simple interest rate of 6.75% per year. Find the amount of interest and the total amount.

4.) Haley invested $1000 for 2 years at a simple interest rate of 8.25% per year. Find the amount of interest and the total amount.

5.) Jacob invests $850 at a simple interest rate of 5.5% per year for 5 years. Find the amount of interest and the total amount.

6.) Carrington invests $15,000 for 8 years at a simple interest rate of 6.75% per year. Find the amount of interest and the total amount.