Exploring Simple Interest Concepts

John invested $5000 in a savings account with an annual simple interest rate of 3%. How much interest will he earn in 2 years?

• $150

• $300

• $450

• $600

Tags

DOK Level 2: Skill/Concept

Sarah has two investment options. Option A offers a simple interest rate of 4% per year, and Option B offers a simple interest rate of 5% per year. If she invests $2000 in each option for 3 years, how much more interest will she earn with Option B compared to Option A?

• $20

• $30

• $60

• $90

Tags

DOK Level 2: Skill/Concept

A loan of $1500 @ 6% for 4 years , the interest earned is $360?

• Yes, the calculation is correct.

• No, the correct interest should be $300.

• No, the correct interest should be $400.

• No, the correct interest should be $450.

Tags

DOK Level 2: Skill/Concept

$2500 @ 5% for 5 years, the interest earned is?

• 2500

• 5

• 625

• 7 years

Tags

DOK Level 2: Skill/Concept

A bank offers a simple interest rate of 3.5% per year. If you want to earn $420 in interest, how much should you invest for 4 years?

• $3000

• $3500

• $4000

• $5000

Tags

DOK Level 2: Skill/Concept

Tom invested $4000 in a bond that pays a simple interest rate of 4.5% per year. How much total amount will he have after 3 years?

• $4540

• $4720

• $4840

• $5000

Tags

DOK Level 2: Skill/Concept

A principal of $1800 is invested at a simple interest rate of 3% per year. How much interest will be earned in 5 years?

• $270

• $300

• $315

• $360

Tags

DOK Level 2: Skill/Concept

If you invest $2500 at a simple interest rate of 4% per year, how much interest will you earn in 6 years?

• $500

• $600

• $700

• $800

Tags

DOK Level 2: Skill/Concept

A sum of $1200 is invested at a simple interest rate of 5% per year. How much total amount will be accumulated after 4 years?

• $1360

• $1400

• $1440

• $1500

Tags

DOK Level 2: Skill/Concept

If a principal amount of $5000 is invested at a simple interest rate of 2.5% per year, how much interest will be earned in 8 years?

• $800

• $900

• $1000

• $1100

Tags

DOK Level 2: Skill/Concept