Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
You can change this under Settings & Account at any time.
Transcript of Simple Interest
The total AMOUNT: the total value of an investment or a loan
I = Prt
A = P + I
A = P + Prt
A = P ( 1 + rt )
I : interest
P : principal
r : interest rate, expressed as a decimal
t : the same period as the interest rate, usually per year FORMULAS TERMS
PRINCIPAL: a sum of money that is borrowed or invested
INTEREST: money you earn from an investment
the cost of borrowing money LEARNING TOOLS How much money does Iris owe us? WHY DO WE NEED TO KNOW SIMPLE INTEREST? Simple interest is something that, if not already, could affect our lives in the future.
But why? When we deposit money into a savings account at a bank, interest can be collected at a certain rate, depending on the situation, company, bank, etc. EXAMPLE:
Carmen deposits $3000 into a savings account. The rate of simple interest is 6%/a.
How much money does Carmen gain in her account each year from interest? I = Prt
I = (3000)(0.06)(1)
I = $180 The interest is $180 per year.
This means that Carmen gains $180 each year on simple interest based upon her initial deposit into her savings account. Total Amount: INTEREST + PRINCIPAL: SIMPLE INTEREST: interest earned or paid only on the original sum of money that was invested or borrowed