Business Math Question

The interest formula shows how interestrate, and time are related. It gives you a way of finding one of these values if the other three values are known. Even though you try to be careful in your calculations, there will always be that occasion when you make an error and end up with an incorrect answer. You can avoid such errors by first predicting what a reasonable answer might be by estimating. As an example, if you have an 11.2% interest, you could use 11% to estimate what the correct result would be.

Search the internet to find an application of simple interest that you find interesting, that you encounter on a daily basis or that you find in your profession.

  1. How could you avoid an error by using a pre-estimation? Present this application to the class and explain why you choose the example.

  2. In what ways do you use estimating in your everyday life?

Include the URL for the site you used. Do not copy the text in the site verbatim. You should summarize your findings.


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