**Introduction to interest:**

http://www.mathsisfun.com/money/interest.html

**SIMPLE INTEREST**

** ****I = Prt **

- I = interest [$]
- P = amount borrowed (called “Principal”) [$]
- r = interest rate [%]
- t = time [years]

**COMPOUND INTEREST**

** ****A = P(1+r)^t **

- A = actual amount owed (total debt) [$]
- P = amount borrowed (called “Principal”) [$]
- r = interest rate [%]
- t = time [years]

**Information on compound interest:**

http://www.mathsisfun.com/definitions/compound-interest.html

**SIMPLE INTEREST PRACTICE PROBLEMS:**

**COMPOUND INTEREST PRACTICE PROBLEMS:**