Intro to Interest

The simple interest formula is I=Prt. The P represents the principle. The principle is ___________________.

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Ann puts $300 in a bank account earning 4% interest. How much will she earn in interest in 1 year?

Starting money = $350.

Interest rate = 2.5%

Time = 3 years.

How much interest?

If you are calculating the simple interest and you are given the time in months. How can you find the time in years?

Covert 18 months to years.

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

Frank has earned $387 in interest over the past 36 months in his account. If the bank has a 1% interest rate, how much was the principal?

Find the ending balance:

$35,600 at 9% for 2 years