1. 3.6 Savings Account September 20, 2011
HW pg. 116 #7­20 1

2. 3.6 Savings Account September 20, 2011
Savings Accounts
Interest = Principal * Rate * Time (I = PRT)
Find interest for 6 months on $400.60 at 1.5% annual
interest paid semiannually.
HW pg. 116 #7­20 2

3. 3.6 Savings Account September 20, 2011
Compound Interest: Balance = P (1 + r / n)n
p= principal, r = rate, n= # of times a year interest is compounded
On January 1, Peter made an ATM deposit of $800 in a savings
account that pays 2% interest, compounded quarterly.
He made no other deposits or withdrawls.
If interest is calculated and paid on April 1 & July 1,
find the account balance and compound interest on July 1.
HW pg. 116 #7­20 3

4. 3.6 Savings Account September 20, 2011
Compound Interest Tables
Find the compound interest paid on a $400 deposit that
earns interest at an annual rate of 2.5% for 12 years.
A $1200 deposit earns annual interest of 4% compounded
quarterly. Find the compound interest the deposit will earn
in 3 years.
HW pg. 116 #7­20 4

5. 3.6 Savings Account September 20, 2011
HW pg. 116 #7­20
HW pg. 116 #7­20 5