Gyan invested $5000 at an interest rate of 5.25% for 3 years. The document provides the simple interest formula and uses it to calculate the interest earned by Gyan. It also calculates the interest Jen will pay for borrowing $7000 at 18.5% for 3 months and determines how long it will take Goitom to earn $1200 interest by investing $10000 at 7.75% interest.

1. Simple things, like Interest

2. Gyan invests $5000 at a rate of 5.25% for
3 years. Calculate the amount of interest
Gyan has earned.
Simple Interest formula: I = P r t

3. Simple Interest formula: I = P r t
Where:
­ I is the amount of interest
­ P is the Principal amount invested or borrowed
­ r is the rate of interest shown as a decimal
­ t is time in years

5. Jen borrows $7000 at a rate of 18.5% for
3 months. Calculate the amount of interest Jen
will pay.

6. Goitom has $10000 to invest. If he can get
an interest rate of 7.75%, how long will it
take for him to earn $1200 interest?

7. Sayana is planning a trip to Disney world for
next Christmas. She has $5000, and has
determined the trip will cost her $6000. What
interest rate must she get to have save enough
money for her trip?

8. Exercise 44
Omit questions
2b, 5, 6, and 8