1. Section 1

1.8. Explore 3

Mathematics 20-3 Module 2

Section 1: Simple and Compound Interest

 

Self-Check 2
  1. Suu Kyi invested $4000 in a five-year regular interest bond. She will receive $200 in simple interest over the five-year term. What is the annual interest rate on the bond? Use the rearranged formula, . Answer

  2.  
    1. Rearrange the formula for simple interest to find the term t if P, r, and I are given. Answer

    2. Charlie earned simple interest of $200 on a $2000 investment. The interest rate was 4% per annum. What was the term of the investment? Answer

  3.  
    1. Rearrange the simple interest formula to find the principal, P. Answer

    2. Mabel borrowed money at 8% simple interest from the bank to purchase furniture for her new apartment. At the end of six months, she paid the loan off. She was charged $200 in interest. How much money did she borrow? Answer

textbook
  1. Do question 2 from “Build Your Skills” on pages 272 and 273 of MathWorks 11. Answer

glossary

It is now time to add new math terms, defintions, and examples/notes to your Mathematics 20-3: Glossary Terms document. Complete the missing pieces of the document, and save it to your desktop. Note that some terms, defintions, and examples/notes have already been provided in the document.

 

In this lesson the new terms you will add are

  • principal (P)
  • interest rate (r)
  • term (t)
  • simple interest (I)
  • annum
  • total amount (accumulated amount is the same thing)

formula sheet

At this time you may want to add the two formulas used in this lesson to your Formula Sheet.


Throughout Mathematics 20-3 you will encounter formulas that you will use to solve problems. It is useful to keep track of the formulas as you move through the lessons.

 

Save Formula Sheet in your course folder now. You will update this document throughout Module 2.