9. interest
IF
YOU
PAY
$2000.00
+
IT
OFF
10
%
Interest
IMMEDIATELY!
=
$2200.00
10. interest
NO
BIG
DEAL
$2000.00
Only
$200.00
+
extra
10
%
Interest
…and
I
sUll
get
=
the
TV
now!
$2200.00
11. NO PE!
Meet
your
ne
w
friend!
COMPOUND
INTEREST
This
is
Compound
Interest.
He
is
horrible
and
he
hates
you.
12. 2 kinds of
inte rest
SIMPLE
INTEREST
1
Pay
a
percent
of
what
you
bor
row.
Usually
on
a
schedule
(10%
for
2
years)
13. 2 kinds of
inte rest
COMPOUND
INTEREST
2
Pay
a
percent
of
what
you
bor
row
but
MORE
int
erest
compounds
o
n
top
of
the
princip
al
AND
interest
you
owe.
14. ex ample
Simple
interest
$2000.00 The
amount
y
ou
have
to
pay
b
+
ack
is
$2200,
no
10
%
Interest
maJer
how
l
ong
=
it
takes.
$2200.00
15. ex ample The
amount
y
ou
have
to
pay
b
Compound recalculated
e
ack
is
interest ach
billing
period
.
It
is
$2000.00 a
percent
of
t
he
+
amount
you
borrowed
AN
10
%
Interest
D
the
original
amou
=
nt
of
$2200.00
interest.
+
2.5%
+
2.5%
+
2.5%