7.8 Simple and Compound Interest

Chapter 7, Section 8: Simple and Compound Interest January 15 th , 2009 Total Real Life Stuff

Warm Up: ,[object Object],[object Object],[object Object],[object Object],$24 $100 $31.50 $17.88

Simple Interest ,[object Object],[object Object],[object Object],[object Object]

Simple Interest Formula ,[object Object],[object Object],[object Object],[object Object],[object Object]

Real-World ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Now Figure Interest In Months ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Try These: Both Find the Simple Interest ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Reminder: Time is always in terms of Years. So, if you’re dealing with months, you have to make your months a fraction of a year. $30 $4.38

Compound Interest ,[object Object],[object Object],[object Object]

Compound Interest Example ,[object Object]

Fill In This Chart $486.20 Year 4: Year 3: Year 2: Year 1: $400.00 Balance at End of Each Year Interest (I = PRT) Principle @ Beginning of Year

Compound Interest Formula ,[object Object],[object Object],[object Object]

Compound Interest Formula ,[object Object],[object Object],[object Object],[object Object],[object Object]

Semi-Annual ,[object Object],6% annual interest rate ÷ 2 interest periods = 3% semiannual interest rate To find the number of payment periods, multiply the number of years by the number of interest periods per year.

Example ,[object Object],[object Object],[object Object]

The Formula! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Try These: Both ,[object Object],[object Object],[object Object],$955.09 $955.37

Assignment #59 ,[object Object]

7.8 Simple and Compound Interest

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7.8 Simple and Compound Interest