Loading in 5 sec....

Simple & Compound InterestPowerPoint Presentation

Simple & Compound Interest

- By
**adlai** - Follow User

- 156 Views
- Uploaded on

Download Presentation
## PowerPoint Slideshow about ' Simple & Compound Interest' - adlai

**An Image/Link below is provided (as is) to download presentation**

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Vocabulary

- Interest: A fee paid by a borrower of money to the owner as compensation.
- Principal: The initial sum of money borrowed.
- Rate: The percentage used to calculate interest.

Simple Interest

- Definition: Interest is calculated as a percentage of only the principal amount.
- Formula for interest: I = P × r × t
I= interest, P = principal, R = rate, T = time

Simple Interest

- Example: Adam borrows $250 from Brandy at a 12% simple interest rate. How much does Adam owe in 8 years?

Compound Interest

- Definition: Interest calculated as a percentage of the principal and the previously accrued interest.
- Formula: A = P(1+r)t
A = Total amount at time “t”

Compound Interest

- Example: Kristy borrows $1200 from Dylan at 18 percent interest compounded annually. How much does Dylan owe in 14 years How much did he pay in interest?

Download Presentation

Connecting to Server..