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Exploring Simple Interest Concepts

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

John invested $5000 in a savings account with an annual simple interest rate of 3%. How much interest will he earn in 2 years?

a)

$150

b)

$300

c)

$450

d)

$600

2.

Sarah has two investment options. Option A offers a simple interest rate of 4% per year, and Option B offers a simple interest rate of 5% per year. If she invests $2000 in each option for 3 years, how much more interest will she earn with Option B compared to Option A?

a)

$20

b)

$30

c)

$60

d)

$90

3.

A loan of $1500 @ 6% for 4 years , the interest earned is $360?

a)

Yes, the calculation is correct.

b)

No, the correct interest should be $300.

c)

No, the correct interest should be $400.

d)

No, the correct interest should be $450.

4.

$2500 @ 5% for 5 years, the interest earned is?

a)

2500

b)

5

c)

625

d)

7 years

5.

A bank offers a simple interest rate of 3.5% per year. If you want to earn $420 in interest, how much should you invest for 4 years?

a)

$3000

b)

$3500

c)

$4000

d)

$5000

6.

Tom invested $4000 in a bond that pays a simple interest rate of 4.5% per year. How much total amount will he have after 3 years?

a)

$4540

b)

$4720

c)

$4840

d)

$5000

7.

A principal of $1800 is invested at a simple interest rate of 3% per year. How much interest will be earned in 5 years?

a)

$270

b)

$300

c)

$315

d)

$360

8.

If you invest $2500 at a simple interest rate of 4% per year, how much interest will you earn in 6 years?

a)

$500

b)

$600

c)

$700

d)

$800

9.

A sum of $1200 is invested at a simple interest rate of 5% per year. How much total amount will be accumulated after 4 years?

a)

$1360

b)

$1400

c)

$1440

d)

$1500

10.

If a principal amount of $5000 is invested at a simple interest rate of 2.5% per year, how much interest will be earned in 8 years?

a)

$800

b)

$900

c)

$1000

d)

$1100