SIMPLE INTEREST

1. If you save KES 4,000 in a bank for 2 years at a simple interest rate of 5%, how much interest will you earn?

• KES 200

• KES 300

• KES 400

• KES 500

2. A loan of KES 12,000 is taken for 3 years at a simple interest rate of 8%. What is the total interest payable?

• KES 960

• KES 2,880

• KES 3,600

• KES 4,800

3. What is the total amount received after depositing KES 10,000 at 6% per year for 4 years?

• KES 2,400

• KES 12,000

• KES 12,400

• KES 16,000

4. If KES 8,000 earns KES 1,280 in interest over 2 years, what is the annual interest rate?

• 6%

• 8%

• 10%

• 12%

5. A farmer borrows KES 25,000 at 9% interest per year. How much interest will they pay after 5 years?

• KES 10,000

• KES 11,250

• KES 12,500

• KES 13,750

6. If a savings account earns 10% simple interest per year, how much interest will be earned on KES 5,000 after 3 years?

• KES 1,000

• KES 1,500

• KES 2,000

• KES 2,500