Let's buy a car!
Calculator link if needed: https://demo.tds.cambiumast.com/DesmosForAssessments/TDSCalculator.html?mode=fl_scirestricted
Reference sheet if needed: https://drive.google.com/file/d/1Itbf-bK6mSFRzZx03tmxnpYDYp0MX_HV/view
MA.7.AR.3.1- Apply previous understanding of percentages and ratios to solve multi-step real-world percent problems.
MA.K12.MTR.7.1 Apply mathematics to real-world contexts.
When you use the formula for simple interest, I=prt, the rate (r) is the percent. Remember to convert the rate to a decimal so that you can multiply it. What would the rate of 7% convert to as a decimal?
When you use the formula for simple interest, I=prt, the t stands for time. Is time always in years?
If the t in the simple interest formula represents time in years, what would you use for time if the loan was for 6 months?
Miguel invests some money in a new company. What is the simple interest Miguel will earn on the money if he gave $5,000 at an annual interest rate of 4.5% for 7 years? (Use the formula 𝐼 = 𝑃𝑟𝑡, where 𝐼 is the interest, 𝑃 is the principal or initial investment, 𝑟 is the interest rate per year, and 𝑡 is the number of years.)
Which car did you buy? Which bank was a better buy? How much will you have to pay in interest? How much will you pay total for your car after you add the original price plus the interest?