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Simple Interest / Compound Interest

Total questions: 15

Worksheet time: 57mins

Name
Class
Date
1.
A bank is offering 2.5% simple interest on a savings account.  If you deposit $5,000, how much interest will you earn in three years?
a)
$5375
b)
$375
c)
$37500
d)
$42500
2.

You lend $240 to your friend. He pays you back $30 in interest in one year. What interest rate did you charge your friend?

a)

88%

b)

20%

c)

12.5%

d)

10%

3.
Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?
a)
$827.52
b)
$831.10
c)
$839.45
d)
$846.80
4.
Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?
a)
$1,584.62
b)
$2,651.39
c)
$2,706.86
d)
$1,825.10
5.

Treasure won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much total will she earn in 10 years?

a)

$4915.59

b)

$3933.28

c)

$2979.81

d)

$4005.09

6.

Maggie would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years?

a)

$15,415.94

b)

$15,683.28

c)

$15,927.56

d)

$16,109.05

7.

Principal: $5000

Interest Rate: 3.75%

Time: 25 years

Compounded Monthly

State the future account balance.

a)

$12712.31

b)

$12,749.30

c)

$12,657.59

d)

$12550.84

8.
Holly is taking out a loan in the amount of $10,000.  Her choices for the loan are a 4-year loan at 4% simple interest and a 6-year loan at 5% simple interest.  What is the difference in the amount of interest Holly would have to pay for each of these two loans?
a)
$1,600
b)
$3,000
c)
$4600
d)
$1,400
9.

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded monthly, how much total will they have paid after 30 years?

a)

$706,761.89

b)
$529.305.61
c)
$689,546.99
d)
$640,891.53
10.

Kevin took out a loan for $5,000 to buy a jet ski. He financed this loan with his bank. The loan has a simple interest rate of 4.35% and is for 6 years.

Move the correct answer to each box.

Kevin will pay a total amount of ​ (a)   on this loan. Of this, ​ (b)   will be in interest.

Choose from the below words
$6,305.00
$1,305.00
$6,455.42
$5,000.00
$1,455.42
11.

Mark borrowed $25,000 for a car loan. The simple interest rate is 5.5% and the loan will be paid off over a 5 year period. How much interest will Mark pay for the loan?

Which formula should I use? ​ (a)  

The question is asking me to find the ​ (b)  

Choose from the below words

a=p(1+r)^t

interest

the total amount in the account

i=prt

12.

If you are given the time in weeks for a simple interest calculation, how can you convert it to years?

a)

multiply the weeks by 52

b)

divide the weeks by 52

c)

add 52 to the weeks

d)

subtract 52 from the weeks

13.

Suppose you borrowed $3000 at a 9% interest rate for 4 years. If the loan involves compound interest, how much interest did you have to pay back?

Which formula should I use? ​ ​ (a)  

The question is asking me to find the ​ (b)  

Choose from the below words
a=p(1+r)^t
interest
the total amount in the account
i=prt
14.

Allison put $1,322 into a savings account 3 years ago.

The account earned 4% interest compounded annually.

She made no additional deposits or withdrawals.

Based on this information, how much interest will Allison's account have earned at the end of these 3 years?

15.

Michael took a loan of $800 from a credit union for 3 years and was charged simple interest. The total interest he paid on the loan was $120. What was the annual interest rate of his loan as a percentage?

Match the following

800

Principle (P)

3

time (t)

Unknown

rate (r)

120

Interest (I)