REST
P x R XT
Jenny wants to put $100 into a savings account for her brand new baby daughter! She doesn't know if she
should put money into an account that has SIMPLE INTEREST or an account that has COMPOUND
INTEREST. Both banks offer a savings account with 5% interest. How much will each account have after 10
years?
13
How do you write 5% as a decimal?__
= Rate
Simple Interest
How do you solve? Write in your own words
Compound Interest
How do you solve? Write in your own words
Time (years)
Account Balance
Time (years)
Account Balance
(Account
Balance x Rate)
10
What's a quicker way to calculate SIMPLE INTEREST after 10 years? (hintl Look at the equation at the top of
the page? & Solve