SIMPLE INTEREST

Simple interest is the amount paid for the use of money.

•

PRINCIPAL -

the amount of money invested or borrowed •

RATE -

in the annual interest •

TIME -

in years

• You can also use the formula to find the simple interest when you deposit money in a savings account

• Angie has $500 in a savings account that pays 5% simple interest.

• How much interest will she earn in 2 years?

• How much interest will she earn if she withdraws the money after 9 months?

HOME IMPROVEMENT

• If you borrow $5,000 at 11.5% for 3 years to make home repairs and improvements. How much will you have to pay back, including interest?

DISCOUNT & SALES TAX

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WHEN AM I EVER GOING TO USE THIS?

– Knowing how to calculate discounts and sales tax will help you determine how much money you’re actually spending when you shop.

• A $53 racquet at Sports Galore is on sale for 20% off the regular price.

• What is the amount of the discount?

• What is the sale price ?

• •

PERCENT OF CHANGE

When shopping for roses the originally cost was $36 dollars before Valentines Day is now on sale for $18 dollars.

What is the percent of decrease of the roses?

Created By:Lynn Husen & Pat Layton Maury Middle Dandridge, TN