Name: ______________________________ Hour: ___________

1. Name: ______________________________ Hour: _________________ A. Simple interest: multiply the balance of money you owe by the interest rate owed, over the course of a year. I = interest P = principal r = interest rate (per year) t = time (in years or fraction of a year) B. Compound interest: occurs when you multiply the balance or principle by the interest rate more than one time a year. It can be figured daily, weekly, monthly, quarterly or semi-annually. A= the amount in the account P=is the principal (the original amount invested) i= the interest rate expressed as a decimal n= number of years compounded Using the two interest rates in the table below, fill in the compound value of $10 for each of the time periods listed. I = Prt I = Prt Name: ______________________________ Hour: ___________ A. Simple interest: multiply the balance of money you owe by the interest rate owed, over the course of a year. I = interest P = principal r = interest rate (per year) t = time (in years or fraction of a year) B. Compound interest: occurs when you multiply the balance or principle by the interest rate more than one time a year. It can be figured daily, weekly, monthly, quarterly or semi-annually. A= the amount in the account P=is the principal (the original amount invested) i= the interest rate expressed as a decimal n= number of years compounded Using the two interest rates in the table below, fill in the compound value of $10 for each of the time periods listed.

2. 72/i=Y 72/i=Y Rule of 72: the rule of 72 states that if you divide the number 72 by an investment’s annual return, you will determine the number of Rule of 72: the rule of 72 states that if you divide the number 72 by an investment’s annual i= interest Y=years