Directions: Looking at the chart below, calculate the monthly interest rate and monthly interest owed on a $5,000 loan for each of the options below. Monthly Interest (loan amount monthly rate) Amount Financial Monthly Rate (APR/12) Institution Borrowed APR/APY Bank Loan $1,000 $1,000 $1,000 $1,000 $1,000 5% Credit Union Loan 3% 11% Credit Card Pay Day Loan Title Pawn Loan 18% 21% Part III: Simple v Compound Interest Directions: Use the given scenario to complete the questions. Simple Interest Scenarios: 1. Abigail is saving $1,000 at 4% interest for 3 years, calculated as simple interest. At the end of the three years, how much interest will she have earned? 2. Elijah is borrowing $10,000 at 3.5% interest for 10 years, calculated as simple interest. At the end of the ten years, how much will he owe? 3. Adeline is saving $5,000 at 2.05% interest for 5 years, calculated as simple interest. At the end of the five years, how much will she have in total? 4. Santiago is borrowing $9,000 at 8% interest for 4 years, calculated as simple interest. At the end of the four years, how much will he owe?

Directions: Looking at the chart below, calculate the monthly interest rate and monthly interest owed on a $5,000 loan for each of the options below. Monthly Interest (loan amount monthly rate) Amount Financial Monthly Rate (APR/12) Institution Borrowed APR/APY Bank Loan $1,000 $1,000 $1,000 $1,000 $1,000 5% Credit Union Loan 3% 11% Credit Card Pay Day Loan Title Pawn Loan 18% 21% Part III: Simple v Compound Interest Directions: Use the given scenario to complete the questions. Simple Interest Scenarios: 1. Abigail is saving $1,000 at 4% interest for 3 years, calculated as simple interest. At the end of the three years, how much interest will she have earned? 2. Elijah is borrowing $10,000 at 3.5% interest for 10 years, calculated as simple interest. At the end of the ten years, how much will he owe? 3. Adeline is saving $5,000 at 2.05% interest for 5 years, calculated as simple interest. At the end of the five years, how much will she have in total? 4. Santiago is borrowing $9,000 at 8% interest for 4 years, calculated as simple interest. At the end of the four years, how much will he owe?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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