b1: i can calculate simple interest on a bank account
Post on 04-Jan-2016
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B1: I can calculate simple interest on a bank account.
The formula for simple interest:
I = P x R x T
Interest
Principal
RateTime
Annual Interest Rate - The percent of the principal that you earn as interest based on one year.
Time is not always exact years so we have to write fractions of a year or decimals. All decimals should be written to seven place values. Do not round.
Let’s try some!
6 months =
9 months =
15 days =
21 days =
87 days =
Example 1 :
Principal: $700Annual interest rate: 3 %What is the interest after 3 months?
I = P x R x TP = 700R= .03
T = 3/12 = .25So, I = 700 x .03 x .25 = $5.25
Example 2:
Colleen O’Rourke’s savings account : $4900 deposit at 4.25% annual interest rate for 6 months. Find the interest.
I = P x R x TP = 4900R = .0425
T = 6/12 = .5I = 4900 x .0425 x .5
I = $104.13
B1: I can calculate the simple interest on a bank account. P. 206 #1-4, #10-13
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