Simple Interest

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Show your work for each problem.

1.
In the simple interest formula , what does represent?
1. a)Period of time
2. b)Principal (starting amount)
3. c)Payment amount
4. d)Percentage rate
2.
Convert 8% to a decimal for use in the interest formula.
3.
Calculate the simple interest:
4.
You deposit 500 dollars at 6% simple interest for 1 year. How much interest do you earn?
1. a)3 dollars
2. b)60 dollars
3. c)30 dollars
4. d)300 dollars
5.
Calculate the interest on 800 dollars at 5% simple interest for 3 years.
6.
You borrow 2000 dollars at 7% simple interest for 4 years. How much interest do you owe?
7.
You invest 1500 dollars at 4% simple interest for 5 years. What is the total amount you will have?
8.
Emma borrows 3000 dollars at 8% simple interest for 2 years. What total amount must she repay?
1. a)3800 dollars
2. b)3240 dollars
3. c)480 dollars
4. d)3480 dollars
9.
A loan of 4000 dollars at 5% simple interest for 6 months. Calculate the interest (remember: 6 months = 0.5 years).
10.
You take a car loan of 12000 dollars at 6% simple interest for 3 years. What is the total amount you will pay?
11.
Which will earn more interest: 1000 dollars at 5% for 4 years, or 2000 dollars at 3% for 3 years?
1. a)They earn the same interest
2. b)Cannot be determined
3. c)2000 dollars at 3% for 3 years (180 dollars)
4. d)1000 dollars at 5% for 4 years (200 dollars)
12.
You earned 180 dollars in interest on a 2000 dollar deposit over 3 years. What was the annual interest rate?
13.
You want to earn 400 dollars interest from a 2500 dollar investment at 4% simple interest. How many years will it take?
14.
A bank account grew from 5000 dollars to 5600 dollars in 4 years with simple interest. What was the interest rate?
15.
Lisa needs 750 dollars for a trip in 2 years. She has 600 dollars now. What minimum interest rate does she need?
1. a)12.5%
2. b)25%
3. c)10%
4. d)15%
16.
What is 15 months expressed in years?
1. a)1.25 years
2. b)1.5 years
3. c)0.15 years
4. d)15 years
17.
How much principal would you need to invest at 5% simple interest for 4 years to earn 600 dollars in interest?