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Transcript
PSSA PREP PSSA 1.8 Percent and Simple Interest Percent means per one hundred. percent = part whole Ex 1 You buy a sweater that was originally priced at $49.00 and it is discounted 20%. How much will you save? What is the new price of the sweater? Ex 2 A new car that sells for $25,600 is discounted 10%. What is the savings? What is the discounted price of the car? Ex 3 A new car has a discounted price of $23,500. The salesman tells you that the price has already been reduced by 15%. What was the original price of the car? Ex 4 On a math test Tom answered 18 out of 20 questions correctly. What was his percentage correct? PSSA PREP Ex 5 The cost of a school lunch went up from $1.60 to $1.85. What was the percent of increase in the cost of a school lunch? Ex 6 School enrollment declined from 1528 to 1436. What was the percent decrease? Ex 7 In Chicago the sales tax on clothing is 8%. In Philadelphia there is no sales tax on clothing. How much more would you pay at a store in Chicago for a sweater that costs $79.99? Ex 8 The price of gas went up by 16% last month. It now costs $2.39 for a gallon of gas. What was the cost of gas last month? Ex 9 If a price is tripled it is increased by _____% PSSA PREP Simple Interest I = prt I = interest earned p = principal (original value) r = interest rate t = time in years Ex 1 Use the simple interest formula to determine the amount of interest earned over 5 years for a savings account containing $2,600 if the interest rate is 1.5%. What is the amount of interest for the same account if the interest rate is 2.25% ? Ex 2 What interest rate would be required to increase a principal value of $300 to $400 over 10 years? Ex 3 Your bank charges you 7% simple interest per year for your car loan. How much interest will you pay for your $20,000 car loan for the first year? PSSA PREP Ex 4 One bank pays 1.25% simple interest per year on a 2 year CD while another bank pays 1.75% interest per year on a 2 year CD. How much more would you earn at the second bank on a deposit of $1000 for 2 years? Compound Interest With compound interest, your interest earned is added to your principal and as time goes on, you earn interest on the interest. r⎞ ⎛ A = p⎜1 + ⎟ ⎝ n⎠ nt A = total amount of money in the account p = principal r = interest rate t = time in years n = number of compounding periods per year (compounded quarterly, n = 4; compounded monthly, n = 12 compounded semi-annually, n = 4 etc.) Ex 5 Randy deposited $3,400 in a bank account earning 4.25% interest compounded quarterly. How money will Randy have in his account after 10 years? Ex 6 Ellen deposited her inheritance, $56,000 in a bank account earning 4.85% interest compounded monthly. How much money will she have in her account after 5 years? Homework: p. 20-21 (1-7, 10, 12, 13, 15-19)