8. lesson 8 homework practice financial literacy
What are the three biggest things that change interest rates?
Find, to the nearest cent, the simple interest earned for each principal, interest rate, and amount of time. $750, 7%, 3 years.
Here’s what to do. Just subtract 100 from the first number. (move the decimal point two places to the right)
750 / 100 = 7.5
Now, you multiply that number by the interest rate, which is 7 in this case.
7.5 x 7 = 52.5
The final step is to multiply that number by how many years have passed. This time, the 3.
52.5 x 3 = $157.50
That much would have been added after three years! Don’t forget that this is just basic curiosity. Compound interest is a little harder to figure out.