15.1 Simple Interest

15.1 Simple Interest

by Hanna Drakos

​What is Simple Interest?

​Example

Multiple Choice

Calculate the simple interest earned if you invest $700 at 6.2%p.a. for 3 years.

(remember that p.a. stands for per annum - per year)

• $130.20

• $260.10

• $135.80

• $251.90

Multiple Choice

Calculate the simple interest charged if you borrow $3400 at 4.85%p.a. for 2.5 years. 

• $412.25

• $445.16

• $310.18

• $591.03

Multiple Choice

Nicole borrowed $2400 from a finance company fo 2 years at 18%p.a simple interest. What is the total amount Nicole must repay?

• $1234

• $6324

• $3264

• $4132

​Example - time fraction not in years

Multiple Choice

What is the simple interest earned on an investment of $940 at 3.25%p.a. for 18 months?

(Hint - this time is not in years)

• $45.83

• $54.92

• $39.60

• $101.50

Multiple Choice

What is the simple interest charged on a loan of $380 at $$5\frac{1}{4}\%$$ p.a.  for 1 month?

• $1.66

• $1.77

• $1.55

• $1.88

​Example - determine the interest rate per month rather than per year.

Multiple Choice

What percentage interest rate per month is equivalent to 4.68% p.a.?

• 0.39%

• 0.54%

• 0.42%

• 0.28%

​Complete question in your maths books:

​Select the correct answer to d on the next slide

Multiple Choice

Answer to d.

• 0.023%

• 0.014%

• 0.08%

• 0.046%

​Complete the working for this in your maths book.

​Select the correct answer to b on the next slide

Multiple Choice

Answer to b. 

• $371.70

• $392.70

• $298.10

• $410.50

​Complete the working for this question in your maths book.

​Select the correct answer for c on the next slide

Multiple Choice

Answer to c. 

• $150.50

• $180.90

• $90.10

• $190.90

​Complete this question in your books and then select the correct answers on the next few slides.

Multiple Choice

Answer to a. 

• $160

• $130

• $145

• $175

Multiple Choice

Answer to b.

• $60

• $50

• $45

• $75

Multiple Choice

Answer to c.

• $25

• $35

• $15

• $45

Open Ended

Answer to d.