Simple Interest

Calculate the simple interest received when $7000 is invested for 2 years at 5% p.a.

• $750

• $350

• $700

• $640

Calculate the simple interest received when $12 000 is invested for 4 years at 3% p.a.

(a)  

Ann puts $300 in a bank account earning 4% interest. How much interest will she earn in 1 year?

(a)  

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50
• $26.25
• $87.5
• $262.50

Calculate the total amount to which $5500 will grow in 4 years if invested at 4.5% p.a. simple interest.

*Remember: Amount = I + P

• $990

• $6490

• $5990

• $5747.50

Calculate the total amount to which $9000 will grow in 3 years if invested at 6.5% p.a. simple interest.

*Remember: Amount = I + P

(a)  

Calculate the total amount to which $20 000 will grow in 5 years if invested at 4% p.a. simple interest.

(a)  

If Nicholas invests $13 500 at 7.4% p.a. simple interest, how much will he have in total in 4 years time?

(Remember: A = I + P)

• $17 280

• $3780

• $3996

• $17 496

A finance company charges 14% p.a. simple interest. If Lynne borrows $2000 to be repaid over 2 years, calculate the total amount owing.

(a)  

Wendy wins $5000 during a chess tournament. She wishes to invest her winnings, and has the two choices given below. Which one gives her the greater total at the end of the time?

Choice 1: 8.5% p.a. simple interest for 4 years

Choice 2: 8% p.a. simple interest for 54 months

(HINT: turn this into years first!)

• Choice 1

• Choice 2