IGCSE Mathematics – Simple and Compound Interest

James invests $1,200 in a savings account that pays 5% per annum simple interest. Calculate the amount of interest James will earn after 3 years.

• $180

• $150

• $200

• $120

If James invested his $1,200 with a simple interest of 5% yearly,

find the total amount James will have in the account after 5 years.

Alia invests $2,000 in a bank that offers 4% compound interest per annum, compounded yearly. Calculate the total amount in the account after 2 years. Give your answer correct to the nearest cent.

• $2,160.00

• $2,081.60

• $2,163.20

• $2,080.00

Sofia invests $1,500 in two different banks:

- Bank A gives 6% simple interest per annum.

- Bank B gives 5.5% compound interest per annum, compounded annually.

Calculate how much she will have in each bank after 3 years.

• Bank A: $1,770; Bank B: $1,761.36

• Bank A: $1,770; Bank B: $1,760.50

• Bank A: $1,680; Bank B: $1,760.00

• Bank A: $1,680; Bank B: $1,761.36

Sofia invests $1,500 in two different banks:

- Bank A gives 6% simple interest per annum.

- Bank B gives 5.5% compound interest per annum, compounded annually.

Which bank gives more profit?

A person received $180 as simple interest after 4 years at a rate of 3% per annum. Find the principal (initial amount) that was invested.

• $1300

• $1500

• $1800

• $2000

Alex invests $5,000 at 3.5% compound interest per annum, compounded yearly. Calculate the amount after 3 years.

• $5,525.88

• $5,543.59

• $5,635.88

• $5,675.88

Alex invests $5,000 at 3.5% compound interest per annum, compounded yearly. How much will he earn in 3 years?

• $675.88

• $635.50

• $543.59

• $525.88

Xian invests $5,000 at 5% interest compounded monthly. How much will he earn in 5 years?

• $5,000

• $5,035.50

• $5,043.59

• $6,416.79

Calculate the principal amount if the simple interest earned in 5 years at a rate of 4% per annum is $400.

• $2,000

• $1,800

• $2,200

• $2,500