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HOLUB- Level one: Simple and Compound Interests

Total questions: 13

Worksheet time: 1hrs 13mins

Name
Class
Date
1.

Samantha went to the mall and saw a piece of furniture that she would have to take a loan out for $6500 to purchase. The bank said that she could get a simple interest rate of 8% for 5 years. What is the total amount that Samantha will pay?

a)

$2600

b)

$910

c)

$9100

d)

$260

2.

Monica invested $2,700 in a savings account earning 7% simple interest. If she invests for 2 years, how much money will she have in total?

a)

$3,078

b)

$378

c)

$40,500

d)

$4536

3.

You invest $500 at 4% rate and receive $60 in simple interest. How many years was it invested for?

a)

1 year

b)

2 years

c)

3 years

d)

4 years

4.

Nate borrowed $3,500 for 3 years at 7½% simple interest rate.

How much interest would he have to pay back?

a)

$1,287.50

b)

$787.50

c)

$810

d)

$812.50

5.

Kevin earned $475 from doing chores over quarantine. 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

6.

If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance?

a)

$1,225,54

b)

$2,100.34

c)

$22,255.40

d)

$225.54

7.
Your 3 year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?
a)
$23,285.05
b)
$3,285.05
c)
$2,385
d)
$32,285
8.
You borrowed $59,000 for 2 years at 11% which was compounded annually.  What total will you pay back?
a)
$13,693.90
b)
$1,363.90
c)
$72,693.90
d)
$73,793.90
9.

You borrowed $1,690 for 5 1/2 years at an interest of 5.7% compounded annually. How much interest would you pay back on that loan?

a)

$602.45

b)

$2,292.45

c)

$1,87.55

d)

$3,982.45

10.
Your allowance of $190 earned an interest of 11% compounded annually for 1 2/3 years.  How much interest did you earn on your allowance?
a)
$343.90
b)
$153.90
c)
$226.10
d)
$36.10
11.
Your 3 year investment of $20,000 received 5.2% interest compounded annually.  What is your total return?
a)
$23,285.05
b)
$3,285.05
c)
$2,385
d)
$32,285
12.

Olivia will deposit $1,530 in an account that earns 6% simple interest every year.


Her sister Melinda will deposit $1,500 in an account that earns 8% interest compounded annually.


The deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts.


Which statement about the balances of Kathy's account and Melinda's account at the end of 3 years is true?

a)

Olivia's account will have about $5.40 more than Melinda's account.

b)

Olivia's account will have about $84.17 more than Melinda's account.

c)

Melinda's account will have about $5.40 more than Olivia's account.

d)

Melinda's account will have about $84.17 more than Olivia's account.

13.

Kenzie 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 Kenzie would have to pay for each of these two loans?

a)

$1,600

b)

$3,000

c)

$4600

d)

$1,400