Simple Interest

Section 1

1) Pam invests $5,000 at 3% interest. How much interest will she earn in 4 years?

I = PRT

I = $5,000 • .03 • 4

I = $600 So, Pam will earn $600 in 4 years.

Subject | Subject

Some text here about the topic of discussion

Section 1

Matthew invest $5000 at 3% simple interest. How much interest will he earn

in 8 months?

Interest = Principal • Rate •Time (in years)

Interest = $5,000 • .03 • 𝟖/𝟏𝟐

Interest = $100 So, Matthew will earn $600 in 4 years.

Section 2

3) Rondell’s parents borrow $6,300 from the bank for a new car. The interest rate is 6% per year. How much simple interest will they pay if they take 2 years to repay the loan?

I = PRT

I = $6,300 • .06 • 2

I = $756 Rondell’s parents will pay$756 in 2 years