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Created by and copyright of Larry Perez. Funded by the state of California through Saddleback College. More information on videos, resources, and lessons at Algebra2Go.
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Word problems about finding interest on money that was invested.
- How do you calculate simple interest?
- What is the simple interest formula?
- What is the formula I = P*R*T used to calculate?
- If a student takes out an emergency loan for $600 to pay for school supplies, and the interest rate is 6% annually, how much interest does the student have to pay after 6 months?
- What is the interest charged if the principal is $600, the rate is 0.06, and the time is 0.5 years?
- If an investor deposits $2000.00 into a savings account and the account pays 7% interest annually, what is the amount in the account after two years?
- What is the amount in an account if the principal is $2000, the rate is 0.07, and the time is 2 years?
- If a student needs a 90 day loan for $750 and the annual interest rate is 18%, how much must the student pay the lender after 90 days?
- How much must be paid on a loan if the principal is $750, the rate is 0.18, and the time is 0.25 years?
- How can you figure out how much interest you will have to pay on a loan that you take out?
- How can you calculate how much interest you will earn in a bank account?
This video goes through several example problems of finding interest gained from money invested in a bank account as well as interest to be paid on a loan. These are very useful skills to have for financial reasons, and this video can be very useful for calculating interest on simple problems.