Mastering Simple Interest Concepts

What is the simple interest on a principal of $500 at a rate of 5% for 3 years?

• $100

• $150

• $50

• $75

If you earn $60 as simple interest on a loan of $800, what is the interest rate?

• 5%

• 10%

• 12.5%

• 7.5%

Calculate the time period if the simple interest is $120, the principal is $600, and the rate is 4%.

• 1.25 years

• 3 years

• 0.5 years

• 2 years

Using the formula for simple interest, calculate the interest earned on $1,000 at 6% for 2 years.

• $200

• $80

• $120

• $60

A sum of $1,200 is invested at a simple interest rate of 3% per annum. How much interest will be earned in 5 years?

• $180

• $300

• $240

• $150

If the simple interest earned is $150 and the principal is $1,000, what is the time period at an interest rate of 5%?

• 2 years

• 3 years

• 5 years

• 4 years

Determine the interest rate if a principal of $2,000 earns $300 in 4 years as simple interest.

• 2.5%

• 4%

• 3.75%

• 5%

What is the total amount after 4 years if $1,500 is invested at a simple interest rate of 4%?

• $1,740

• $1,500

• $1,620

• $1,800

If you have $800 and want to earn $64 in interest in 2 years, what interest rate should you choose?

• 4%

• 2%

• 6%

• 8%

A loan of $2,500 is taken for 3 years at a simple interest rate of 5%. What is the total amount to be repaid?

• 2500

• 3000

• 2750

• 2875