Simple Interest Practice

Calculate the simple interest on a principal amount of $500 at an interest rate of 5% per year for a period of 3 years.

• $150

• $100

• $75

• $50

Answer explanation

To calculate simple interest, use the formula: Interest = Principal x Rate x Time. Here, Interest = $500 x 0.05 x 3 = $75. Thus, the correct answer is $75.

Tags

7.13.E

Find the simple interest on a loan of $1000 at an interest rate of 8% per year for a duration of 2 years.

• 160

• 200

• 400

• 80

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = $1000 × 0.08 × 2 = $160. Thus, the correct answer is 160.

Tags

7.13.E

A sum of $800 is invested at an interest rate of 6% per year. Calculate the simple interest earned after 4 years.

• $24

• $120

• $480

• $192

Tags

7.13.E

A person borrows $1200 at an interest rate of 7% per year. Find the simple interest after 5 years.

• $420

• $350

• $500

• $600

Tags

7.13.E

Find the simple interest on a loan of $2000 at an interest rate of 6% per year for a duration of 4 years.

• 480

• 800

• 400

• 1200

Tags

7.13.E

A sum of $1000 is invested at an interest rate of 4% per year. Calculate the simple interest earned after 3 years.

• $40

• $80

• $160

• $120

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = $1000 × 0.04 × 3 = $120. Therefore, the correct answer is $120.

Tags

7.13.E

A person borrows $800 at an interest rate of 5% per year. Find the simple interest after 2 years.

• $40

• $120

• $160

• $80

Answer explanation

To find simple interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = $800 × 0.05 × 2 = $80. Thus, the simple interest after 2 years is $80.

Tags

7.13.E

Determine the total value of an investment of $200 at a 3% simple interest rate for 5 years.

• $225
• $230
• $220
• $215

Tags

7.13.E

Determine the total value of an investment of $1800 at a 2.5% simple interest rate for 20 years.

• $3600
• $4500
• $5400
• $2700

Tags

7.13.E

Determine the total value of an investment of $2000 at a 3% simple interest rate for 10 years.

• $2600

• $2500

• $2400

• $2300

Answer explanation

To calculate the total value of the investment, use the formula: Total Value = Principal + (Principal x Rate x Time). Here, Total Value = 2000 + (2000 x 0.03 x 10) = 2000 + 600 = $2600.

Tags

7.13.E