B.1 Simple And Compound Interest - Big Ideas Math
EnglishSpanishSimple and Compound InterestB.1How can you find the balance in an accountSSTATESTANDARDSMA.8.A.1.1MA.8.A.1.6that earns simple interest or compound interest?1ACTIVITY: Comparing Simple and Compound InterestWork with a partner. Interest that is calculated only on principal issimple interest. Interest that is calculated on principal and previouslyearned interest is compound interest.You deposit 1000 in a savings account that earns 6% interest per year.a. Copy and complete the first table thatshows the balance after 10 yearswith simple interest.b. Copy and complete the secondtable that shows the balance after10 years with interest that iscompounded annually.c. Which type of interest gives thegreater balance?I Prt 1000(0.06)(1)Simple InterestA10Compound InteresttPrincipalAnnualInterestBalance atEnd of YeartPrincipaland InterestAnnualInterestBalance atEnd of Year1 1000.00 60.00 1060.001 1000.00 60.00 1060.002 1000.00 60.00 1120.002 1060.00 63.60 1123.60334455667788991010Appendix BFinancial Literacy
Spanish2ACTIVITY: Comparing Simple and Compound InterestWork with a partner.a. Graph the end-of-year balances foreach type of interest in Activity 1.b. Which graph is linear? Explainyour reasoning.c. For the linear graph, write a linearfunction that represents the balanceafter t years.Simple InterestCompound ear balance (dollars)End-of-year balance 020010010000123456789 10 tTime (years)00123456789 10 tTime (years)3. IN YOUR OWN WORDS How can you find the balance in an account thatearns simple interest or compound interest?4. Use what you learned in Activity 2. About how many years will it take forthe balance to double with simple interest? with compound interest?Use what you learned about simple and compound interest tocomplete Exercise 3 on page A14.Section B.1Simple and Compound InterestA11
EnglishB.1SpanishLessonLesson TutorialsKey Vocabularycompound interest,p. A13Balance in a Simple Interest AccountThe balance B of an account that earns simple interest isAnnual interest rate(in decimal form)BalanceB P(1 rt).RememberEXAMPLETime (in years)PrincipalInterest is money paidor earned for the use ofmoney. The principal isthe amount of moneyborrowed or deposited.1Comparing Simple Interest AccountsYou deposit 275 in a savings account that earns 4% simple interestper year. Your friend deposits 300 in a savings account that earns2% simple interest per year. (a) Write and graph two equations for thebalance B in each account after t years. Describe the equations.(b) Are the account balances ever equal? Explain.a. YouReadingNotice that bothequations are of theformy mx b. 275(1 0.04t) 275 11tB P(1 rt)Write balance formula. 300(1 0.02t)Substitute values. 300 6tSimplify.Graph the equations. Your accountbalance increases at a constantrate of 11 per year. Your friend’saccount balance increases at aconstant rate of 6 per year.b. Yes, the graphs appear to intersectwhen t 5. So, after 5 years, theaccounts are equal.Simple InterestB400Balance (dollars)B P(1 rt)Your Friendfriend: B 300 6t380360340320300280you: B 275 11t2600012345YearExercise 4A12Appendix B1. WHAT IF? In Example 1, your friend deposits 600 in theaccount. Are the account balances ever equal? Explain.Financial Literacy67 t
EnglishSpanishCompound interest is interest earned on the principal and on thepreviously earned interest.EXAMPLECalculating Compound Interest2You deposit 400 in an account that earns 3.5% interest compoundedannually. What is the account balance after 2 years?Interest for 1st year: I PrtStudy TipThe simple interestformula I P r t canbe used to find thebalance in an accountthat earns compoundinterest.Write simple interest formula. 400(0.035)(1)Substitute. 14Simplify.The account balance after 1 year is 400 14 414.Interest for 2nd year: I PrtWrite simple interest formula. 414(0.035)(1)Substitute. Use 414 for P. 14.49Simplify.The account balance after 2 years is 414 14.49 428.49.EXAMPLEComparing Simple and Compound Interest3You want to invest 8000 for 3 years. Which account should you choose? Account A earns 4% simple interest per year. Account B earns 4% interest compounded annually.Make two tables that show the account balances for 3 years.Account AAccount BYearPrincipal4% SimpleInterestBalance atEnd of YearYearPrincipaland Interest4% CompoundInterestBalance atEnd of Year1 8000 320 83201 8000.00 320.00 8320.002 8000 320 86402 8320.00 332.80 8652.803 8000 320 89603 8652.80 346.11 8998.91Account B earns 8998.91 8960 38.91 more than Account Aafter 3 years. So, you should choose Account B.2. In Example 2, what is the account balance after 5 years?Exercises 5, 6, and 83. In Example 3, how much more does Account B earn than Account Aafter 2 more years?Section B.1Simple and Compound InterestA13
EnglishSpanishExercisesB.1Help with Homework1. VOCABULARY What type of interest is money earned only on the principal?2. WRITING How are simple interest and compound interest similar? How arethey different?6) 39 (- 3) 3 (- 9) 4 (- 1)9 (-3. You deposit 500 in a savings account that earns 3% interest per year.a. Copy and complete the tables that show the balances after 5 years withsimple interest and compound interest.b. Which type of interest gives the greater balance?Simple Interest1Compound InteresttPrincipalAnnualInterestBalance atEnd of YeartPrincipaland InterestAnnualInterestBalance atEnd of Year1 500 15 5151 500 15.00 515.002 500 15 5302 515 15.45 530.453344554. You deposit 600 in a savings account that earns 4% simple interest per year. Yourfriend deposits 400 in a savings account that earns 5% simple interest per year.a. Write and graph two equations for the balance B in each account after t years.b. Are the account balances ever equal? Explain.25. You deposit 1200 in a savings account that earns 5.4% interest compoundedannually. What is the account balance after 3 years?6. You deposit 300 in a savings account that earns 7.2% interest compoundedannually. What is the account balance after 2 years?7. ERROR ANALYSIS Describeand correct the error in findingthe balance of the simple interestaccount after two years.A14Appendix BFinancial Literacy Principal: 700Rate: 3% per yeartPrincipalAnnualInterestBalance atEnd of Year1 700.00 21.00 721.002 721.00 21.63 742.63
EnglishSpanish38. INVESTMENT The owners of a company want to invest 12,000 for 4 years.a. Which account should they choose? Explain. Account A earns 5% simple interest per year. Account B earns 5% interest compounded annually.b. How much more do they earn by choosing the better account?9. GAMES After 7 years at 3% simple interestper year, your savings account earns 63.a. What is the principal?b. How much money do you have left aftergbuying the video gamesystem? 35010. DIRT BIKE Your friend borrows 1050 from you to buya new dirt bike. Your friend pays you back the principalplus 7.25% simple interest per year in 3 years. How muchmoney do you earn?11.You want to deposit 600 in a savings account. Account A earns 3.5%simple interest per yeyear. Account B earns 3.3% interest compounded annually.a. Which account should you choose if you invest your money for 3 years?6 years? Explain.b. After how many years is the balance in Account B greater than thebalance in Account A?c. After how many years is the difference between the account balancesgreater than 5?Simplify the expression.212. 12 12513.SECTION 9.2( 1.5x 2 )3 14. 3p 4 2.4p 815.( 5.4 d 9 )216. MULTIPLE CHOICE The ratio of the number ofstudents with Attention Deficit HyperactivityDisorder to the number of students in an entireschool is 1 : 20. What percent of students in theschool have Attention Deficit HyperactivityDisorder? SKILLS REVIEW HANDBOOKA 5% B 8% C 20% D 25% Section B.1Simple and Compound InterestA15
A12 Appendix B Financial Literacy Lesson Tutorials B.1 Lesson Key Vocabulary compound interest, p. A13 Balance in a Simple Interest Account The balance B of an account that earns simple interest is Remember B P(1 rt). Interest is money paid or earned f
Simple, Compound, and Complex Sentences 3 B. Over to You 1 Read the sentences. Decide if they are simple, compound, or complex. Write S for Simple, C for Compound, or CX for Complex. 1 Tom made a good impression, so he got the job. 2 Jason seems friendly, although he is very shy. 3 Nancy and Lorena have a lot of friends. 2 Read the paragraph .
Color by Number: Identifying Simple, Compound, and Complex Sentences Answer Key 1. Jack jumped over the hill. simple COLOR LIME GREEN compound COLOR PURPLE complex COLOR ORANGE 2. Sleeping Beauty was in a deep sleep before the prince arrived. simple COLOR BLACK compound COLOR LIME GREEN complex COLOR PURPLE 3. Jim bought pencils at Walmart, and .
Sep 16, 2016 · 2. Predict whether each of the following is ionic or covalent (molecular). Circle your answers. a. Water, H 2O ionic compound covalent compound b. Sodium chloride, NaCl ionic compound covalent compound c. Calcium carbonate, CaCO 3 ionic compound covalent compound d. Hydrogen chloride, HCl io
Inequalities Write simple and compound inequalities. Graph compound inequalities. Solve compound inequalities. A.CED.1 A.CED.2 A.REI.3!Compound inequality!Solution of a compound inequality!Conjunction!Disjunction! This chapter reviews solving linear equations and inequalities with an emphasis towards connecting the numeric, graphic .
Find probabilities of compound events using organized lists, tables, tree diagrams, and simulation. 7.SP.8.a Understand that, just as with simple events, the probability of a compound event is the fraction of outcomes in the sample space for which the compound event occurs. 7.SP.8.b Represent sample spaces for compound events using methods such as
Simple, Compound, Complex, Compound-Complex Many thanks to a Mrs. Thompson at Calvin Nelms . Combine These Simple Sentences by Using Conjunctions! Use at least 1 subordinating conjunction and various FANBOYS! Although Rihanna's charity work and thriving career keep
A clause containing a compound subject and a compound verb still counts as a single clause. Remember, a compound subject is a single subject, and a compound verb is a single verb. So you still have one subject j
MCAS Biology Review! Cells and Their Processes Compounds A compound is a combination of 2 or more atoms An organic compound is a compound that contains carbon atoms that have combined with each other An inorganic compound is a compound with no combination of carbon atoms The Four Types of Organi
