Simple interest P3 and !

If you have an interest rate of 6.5%, what is the decimal form?

If you have an interest rate of 22%, what is the decimal form?

If you have an interest rate of 9%, what is the decimal form?

If you borrow money for 6 months, what do you use for the fraction of years?

If you borrow money for 8 months, what do you use for your formula?

• 8

• 8/12

• 0.6

• 1.5

​Maggie put $580 into a savings account. The account pays 2.5% simple interest each year. If she neither adds or withdraws money from the account, how much interest will she earn after two years?

WHAT DO WE USE FOR THE RATE?

​Maggie put $580 into a savings account. The account pays 2.5% simple interest each year. If she neither adds or withdraws money from the account, how much interest will she earn after two years?

If we use the equation below, how much interest does she make?

I = 580 x 0.025 x 2

Carrie invests $430 into a savings account. The account pays 3% simple interest on an annual basis. If she does not add or withdraw money, how much interest will she earn after 18 months?

NOW SOLVE FOR CARRIE'S INTEREST USING THE FORMULA:

I = 430 X .03 X 1.5

Jeremy borrows $14,280 at a rate of 3.8% per year. How much simple interest will he owe if it takes 6 months to repay the loan?

I = P x R x T

Hint: Time in YEARS

What simple interest would you pay in one year for $14,000 at 13.5%. Which proportion would find the interest?

• I have no idea.