Math 6 High ( Period 3)

Simple Interest 7.6

When you put money in a savings account at a bank, the bank pays you interest. When you borrow money from a bank, you must pay the bank interest to the bank in addition to paying bank the money that you borrowed.

A principal is an amount borrowed, loaned or saved. An annual interest rate is the percent of the principal you earn or pay as interest for the year.
SIMPLE INTEREST is the product of the principal, the annual interest rate , and the time in years.

Interest = Principal ·rate ·time

I=Prt

Examples:

You borrow $1500 from a friend for the down payment on a car. Your friend charges you an annual interest rate of 8% ( Nice friend!) Find the simple interest you will pay in 1 year.

Solution:
Remember   I = Prt

What do you know?

I = (1500) (0.08)(1) 
Most of the time change the interest rate to a decimal. Occasionally you will want to use fractions

Carefully multiply... and discover that

I = 120

Therefore: The simple interest you will pay in 1 year is $120.

You deposit $300 in a savings account. The annual interest rate is 3% (not much). Find the simple interest you will earn in 1 month.

What do you know?   You know the principal  ( or P in the formula) is $300. You know the annual interest rate ( or r in the formula)  is 3%  But.. wait… be careful…the time must be in years  this is only for one month. The time (or t in the formula is 1/12)

Solution:

Remember   I = Prt

I = (300)(0.03)(1/12)

I would carefully simplify before I multiplied

I = 0.75

Again, think what does that mean?
The simple interest you would earn on $300 in 1 month at that rate is $0.75 

When you know the values of any three of the variables in the formula   I = Prt  you can use substitution to find the value of the fourth variable.

Your savings account earns $68 in simple interest in 1 year. The annual interest rate is 8% what is the principal?

Ask yourself, what do I know? What are the three variables  in the formula  I = Prt   that I do know?

$68 is the interest. The rate is 8% and it’s only for 1 year.

so

Remember   I = Prt

68 =P(0.08)(1)

68=0.08p

Solve this one-step equation

Divide both sides by 0.08 carefully

68/0.08 = 0.08p/0.08

850 = p

Therefore the principal is $850

You want to open an account with $100.
At Bank A you will earn $0.65 in 3 months.
At Bank B you will earn $2.25 in one year. At which bank will you open your account?
Although banks do not pay simple interest (they use compound interest)  we will assume that Bank A and B are paying only simple interest.

Figure out each bank’s simple interest rate.

Remember   I = Prt  

Bank A:   3 months is 3/12 or ¼  of a year so 

0.65 =  (100)(r) (¼)
0.65= 25r

Solve this one step equation
Divide both sides by 25

0.65/25= 25r/25

0.026= r
We need to change the decimal into a percent
That means Bank A’s rate is 2.6%

Bank B: Yes you can use the formula but look at what you know

2.25 =(100)(r)(1)
That means  r= 0.225
or that the rate for Bank B is 2.25%

You would earn more money if you deposit your savings into Bank A

Math 6A (Periods 2 & 4)

Equations: All 4 Op's Sections 8.1- 8.5 Summary 

You may be able to solve some of the equations in the homework without pencil and paper. Nevertheless, it is important to show all the steps in your work and to make sure you can tell which transformation you are using in each step.

If the replacement set for an equation is the set of whole numbers, it is not practical to use substitution to solve the equation. Instead we transform or change the given equation into a simpler, equivalent equation. When we transform the given equation, our goal is to arrive at an equivalent equation of the form
variable = number

Transformation by addition: add the same number to both sides
Transformation by subtraction: subtract the same number from both sides

solve x – 2 = 8
our goal is to find an equivalent equation of the form
x = a number

The left side of the given equation is x – 2. Recall that addition and subtraction are inverse operations. If we add 2 to both sides the left sides simplifies to x
x-2 = 8
x – 2 + 2 = 8 + 2 (We usually show the +2 right below each side of the equation)
x = 10


Solve x + 6 = 17
Subtract 6 from both sides of the equation to get an equivalent equation of the form
“ x = a number”

x + 6 = 17
x + 6 – 6 = 17 – 6 (Again, we usually show the -6 right below each side of the equation)
x = 11
the solution is 11

In equations involving a number of steps, it is a good idea to check your answer. This can be done easily by substituting the answer in the original equation.
What about the following
34 – x = 27
add x to both sides
34 – x + x = 27 + x
34 = 27 + x
subtract 27 from both sides
34 – 27 = 27 – 27 + x
7 = x


If an equation involves multiplication or division, the following transformations are used to solve the equation:

Transformation by multiplication: Multiply both sides of the equation by the same nonzero number.
Transformations by division: Divide both sides of the equation by the same nonzero number.

Remember: Do undo on one side what you would do undo the other!!

Our goal is to get the variable alone and to find an equivalent equation of the form
“n = a number”
Our goal is to arrive at the “world’s easiest equation”

Solve 3n = 24
Use the fact that multiplication and division are inverse operations
3n/3 = 24/3
n = 8
Or you could have use the reciprocal of 3--> which is 1/3 and multiplied both sides by 1/3
(1/3)(3n) = 24(1/3)
n = 8 and still arrived at the SAME solution

Solve 5x = 53

5x/5 = 53/5
x = 10 3/5

Solve n/4 = 7
(4)(n/4) = 7(4)
n = 28
How could you know for sure your answer is correct?
Substitute your solution into the ORIGINAL equation
Try:
1. 3r = 57

2. 714 = 7t

3. Solve A = bh for h

4. Solve P = 4s for s

5. Solve C = 2πr for r



Remember when we stated the properties as well-- back in our 1st quarter!!  

Equations with Decimals or Fractions 
You can use transformations to solve equations which involve decimals or fractions
Solve 0.42 x = 1.05
Divide both sides by 0.42
.42x/.42 = 1.05/.42
now, do side bar and actually divide carefully and you will arrive at
x = 2.5

Solve: n/.15 = 92
multiply both sides by .15 to undo the division
(n/.15)(.15) = 92 (.15)
Again, do a sidebar for your calculations and you will arrive at
n = 13.80

How would we solve the following: (2/3)x = 6?

Let’s look at 2x = 6. What do we do?
We divide both sides by 2—or multiply both sides by the reciprocal of 2—which is ½
Remember the product of a number and its reciprocal is 1

Reminder: the ultimate objective is applying transformations to an equation is to obtain an equivalent equation in the form x = c
(where c is a constant.)

Also remember that the understood (invivisble) coefficient of x in the equation x = c is 1.

[Can you picture the poster in the front of the room?]

So to solve (2/3)x = 6 you would divide both sides by 2/3 but that is the same as multiplying by the reciprocal of 2/3, which is 3/2.

If an equation has the form

(a/b)(x) = c,
where both a and c are nonzero,
multiply both sides by b/a, the reciprocal of a/b
Solve (1/3)y = 18

(3/1)(1/3)y = 18(3/1)

y =18(3)
y = 54

Solve the equation: (6/7)n = 8
(7/6)(6/7)n = 8(7/6)

n = 8(7/6)

simplify first , then multiply
n = 28/3
n = 9 1/3
Let’s check

(6/7)n = 8
well, we said that n = 9 1/3 so substitute back, but change to 28/3 first
(6/7)(28/3) ?=? 8
[read ?=? as ‘does that equal?’]

Now really do a side bar with the left side of the equation to see what
(6/7)(28/3) really equals. Simplify before you multiply
2(4) = 8 so
8 = 8


Try:
1. (1/7)a = 13

2. b/8 = 16

3. 3.6d = 0.9

4. (3/8)f = 129


Combined Operations 8-5 

In order to solve an equation of the form
ax + b = c or ax –b = c or b – ax = c
where a, b, c are given numbers and x is the variable, we must use more than one transformation

Solve the equation 3n - 5 = 10 + 6
Simplify the numerical expression

3n - 5 = 10 + 6
3n – 5 = 16

add 5 to both sides

3n – 5 + 5 = 16 + 5
or
3n – 5 = 16
+ 5 = +5

3n = 21

divide both sides by 3 (or multiply each side by the reciprocal of 3)
3n/3 = 21/3

n = 7

General procedures for solving equations

Simplify each side of the equation
If there are still indicated additions or subtractions, use the inverse operation to undo them
If there are indicated multiplications or division involving the variable, use the inverse operations to undo them

The books says you must always perform the same operation on both sides of the equation. I say, “do to one side what you have done to the other side.”

Solve the equation
(3/2)n + 7 = 22
subtract 7 from both sides
(3/2)n + 7 - 7 = 22 - 7
(3/2)n =15

multiply both sides by 2/3, the reciprocal of 3/2

(2/3)(3/2)n = 15(2/3)
n = 10

Solve the equation
40 – (5/3)n = 15
add (5/3)n to both sides

40 – (5/3)n + (5/3)n = 15 + (5/3)n

40 = 15 + (5/3)n
subtract 15 from both sides

40 – 15 = 15-15 + (5/3)n

25 = (5/3)n multiply both sides by 3/5

(3/5)(25) = (5/3)n (3/5)

15 = n