Transcript 2-4 PPT
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
1. $60; with a 60% discount
2. $40; with 7% tax
3. $199; with a15% discount
4. $119.50; with 20% off and 7% tax
New Rule – Homework must be turned in at
the beginning of class to be considered on
time.
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
1. $60; with a 60% discount
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
1. $60; with a 60% discount
100% - 60% = 40%
part = percent (in decimal form) x whole
part = .4 · 60 = $24.00
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
2. $40; with 7% tax
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
2. $40; with 7% tax
100% + 7% = 107%
part = percent (in decimal form) x whole
part = 1.07 · 40 = $42.80
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
3. $199; with a15% discount
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
3. $199; with a15% discount
100% - 15%= 85%
part = percent (in decimal form) x whole
part = .85 · 199 = $169.15
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
4. $119.50; with 20% off and 7% tax
5 Minute Check
Find the price to the nearest cent. Complete
on the back of your homework.
4. $119.50; with 20% off and 7% tax
100% - 20%= 80%
part = percent (in decimal form) x whole
part = .8 · 119.5 = $95.60
100% + 7% = 107%
part = percent (in decimal form) x whole
part = 1.07 · 95.6 = $102.29
Wednesday, Feb 4
Lesson 7.2.8
Financial Literacy
Solve One-Step Inequalities
Hint - the principal amount is the initial amount
you invest or deposit into an account.
Solve One-Step Inequalities
Hint - rate is in decimal form.
Solve One-Step Inequalities
Solve One-Step Inequalities
Financial Literacy
Objective: To solve problems involving simple
interest.
Financial Literacy
The principal is the amount of money
deposited or borrowed.
Financial Literacy
The principal is the amount of money
deposited or borrowed.
Simple interest is the amount paid or earned
for the use of the money.
Financial Literacy
The formula below shows how to calculate
simple interest.
Write this down.
Financial Literacy
Dollars earned($)
Dollars deposited($)
Percent (decimal)
Years
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = prt
Interest earned?
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = prt
Principal?
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = 580rt
Rate?
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = 580 · 0.03t
Time?
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = 580 · 0.03 · 5
What is the simple interest?
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = 580 · 0.03 · 5 = $87
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = 580 · 0.03 · 5 = $87
How much will he earn in 6 months?
Financial Literacy
Arnold puts $580 into a savings account.
The account pays 3% simple interest. How
much will he earn in 5 years?
I = 580 · 0.03 ·
6
12
= $8.70
Remember, time is in years. This fraction
should be simplified or can be converted to a
decimal.
Financial Literacy
Jenny puts $1000 into a savings account.
The account pays 2.5% simple interest.
How much will he earn in 3 years?
I = prt
Do this on your own.
Financial Literacy
Jenny puts $1000 into a savings account.
The account pays 2.5% simple interest.
How much will he earn in 3 years?
I = prt
I = 1000 · 0.025 · 3 = $75
On the homework, this is the work that must be shown;
in addition to the long multiplication. The long
multiplication can be done on another piece of paper,
but must be numbered.
Financial Literacy
Marco invests $800 into a savings account.
The account pays 4% simple interest. How
much will he earn in 5 years?
I = prt
Do this on your own.
Financial Literacy
Marco invests $800 into a savings account.
The account pays 4% simple interest. How
much will he earn in 5 years?
I = prt
I = 800 · 0.04 · 5 = $160
Financial Literacy
If you borrow money from a bank, you pay the
bank interest for the use of their money. You
also pay interest to a credit card company if
you have an unpaid balance. You can use
the formula to also find the amount of
interest owed.
I = prt
Financial Literacy
Rondell’s parents borrow $6,000 from the
bank to buy a car. The interest rate is 6% a
year. How much simple interest will they pay
if they take 2 years to repay the loan?
I = prt
Do this on your own.
Financial Literacy
Rondell’s parents borrow $6,000 from the
bank to buy a car. The interest rate is 6% a
year. How much simple interest will they pay
if they take 2 years to repay the loan?
I = prt
I = 6000 · 0.06 · 2 = $720
This is in addition to the initial $6,000.
Financial Literacy
Derrick’s dad bought new tires for $900 using
a credit card. His card has an interest rate of
19%. If he has no other charges on his card
and does not make a payment, how much
money will he owe after one month?
Do this on your own.
Financial Literacy
Derrick’s dad bought new tires for $900 using a
credit card. His card has an interest rate of 19%.
If he has no other charges on his card and does
not make a payment, how much money will he owe
after one month?
14.25
I = prt
1
I = 900 · 0.19 · 12
I = 171·
1
12
= 14.25
$900 + $14.25 = $914.25
12)171.00
-12
51
-48
30
-24
60
Financial Literacy
Mrs. Hanover borrows $1,400 at a rate of
5.5% per year. How much simple interest will
she pay if it takes 8 months to repay the
loan?
I = prt
Do this on your own.
Financial Literacy
Mrs. Hanover borrows $1,400 at a rate of
5.5% per year. How much simple interest will
she pay if it takes 8 months to repay the
loan?
I = prt
8
I = 1400 · 0.055 · 12 = $51.33
Remember that
8
12
can be simplified to
2
3
Financial Literacy
Luis is taking out a car loan for $5,000. He
plans on paying the loan off in 2 years. At
the end of 2 years, he will have paid $300 in
interest. What is the simple interest rate on
the car loan?
I = prt
Financial Literacy
Luis is taking out a car loan for $5,000. He plans
on paying the loan off in 2 years. At the end of 2
years, he will have paid $300 in interest. What is
the simple interest rate on the car loan?
I = prt
300 = 5000 · r · 2
300 = 10,000r
300
=r
10,000
300
10000
=r
3% = r
Financial Literacy
Johanna’s parents give her $10 per week for lunch money.
Dustin bought a $2,000 computer with a credit card. The
minimum payment each month is $35. Each month 1% of the
unpaid balance is added to the amount he owes.
If he pays only $35 the 1st month, what will he owe the 2nd
month?
Financial Literacy
Johanna’s parents give her $10 per week for lunch money.
Dustin bought a $2,000 computer with a credit card. The
minimum payment each month is $35. Each month 1% of the
unpaid balance is added to the amount he owes.
If he pays only $35 the 1st month, what will he owe the 2nd
month?
principal – min payment
principal – min payment x monthly interest
After 1st month = ($2000 – $35) + ($2000 – $35) · 0.01
= $1965
+ $1965 · 0.01
= $1965
+ $19.65
= $1984.65
Financial Literacy
Johanna’s parents give her $10 per week for lunch money.
Dustin bought a $2,000 computer with a credit card. The
minimum payment each month is $35. Each month 1% of the
unpaid balance is added to the amount he owes.
If he pays the minimum payment, what will he owe the 3rd
month?
Financial Literacy
Johanna’s parents give her $10 per week for lunch money.
Dustin bought a $2,000 computer with a credit card. The
minimum payment each month is $35. Each month 1% of the
unpaid balance is added to the amount he owes.
If he pays the minimum payment, what will he owe the 3rd
month?
After 1st month = $1984.65
new principal – min payment
new principal – min payment x monthly interest
After 2nd month = ($1984.65 – $35) + ($1984.65 – $35) ·0.01
= $1949.65
+ $1949.65 · 0.01
= $1949.65
+ $19.50
= $1969.15
Financial Literacy
Agenda Notes
Homework
Homework Practice 7.2.8
Show all work and circle the answer.
Do not do #7 or 8
Due Thursday, Feb 5
Chapter 7.2/7.3 Test - Tuesday, Feb 10