Notes # ____

VOCABULARYVOCABULARY

time value of money

simple interest

FORMULASFORMULAS

A P I

I Prt

or 1A P Prt A P rt

principal = $66,598interest rate = 9.01%time = 5 yearssimple interest = ________

Ex 1

principal = $1,682interest rate = 2.72%time = ________simple interest = $91.51

Ex 2

principal = $507,292interest rate = ________time = 18 monthssimple interest = $50,522.06

Ex 3

principal = ________interest rate = 4.98%time = 60 monthssimple interest = $23,192.51

Ex 4

Jerry invested $1500 in an account that paid him 8.25% simple interest, what will the balance of his account be after 6 years?

Ex 5

Anna invested $2,500 at an annual rate of 5%. How long will it take until Anna earns $1,125 in interest?

Ex 6

Jack deposited $1400 in his bank account. After 3 years, the account is worth $1,694. Find the simple interest rate the account earned.

Ex 7

Barrett managed to get a loan for $3000 from the M&I Marshall and Ilsley Bank in order to get a bike. The $3000 was obtained at an interest rate of 3% per annum, with a 24 month term. How much interest will Barrett owe at the end of the loan?

Ex 8

Karter has borrowed $3000 from the Boston Private Bank & Trust Co. so that he can get his hands on a digital camera. They loaned him the $3000 at a per annum interest rate of 9% with a 30 month term. How much will Karter owe the bank at the end of the loan period?

Ex 9