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Simple Interest

 


If you invest money with a bank, then interest is paid to you for lending them the money. 

On the other hand, if you borrow money then you will have to pay the bank interest. 

Simple interest is the cost of borrowing money.

Principal (P) - The amount of money invested or borrowed. 

Interest (I) - The amount of extra money is called the interest

Time (T) - the time in years 



1. If Michael invests $2000 in the bank at a rate of 5% for 6 years how much interest will he make?

2. ) Kelsey takes out a loan for $6000 to start a business after high school.  The bank charges her 8% interest for the loan.  After 5 years how much interest will be added  on to the loan?

3. Scott gets a student loan to go to college after high school. He borrows $30,000 at a rate of 8% to be repaid in 15 years. How much interest will he pay?

4. ) If you invest $6200 in the bank at a rate of 3% for 6 years how much interest will he make?


Simple Interest 

Fid the interest for 1-year on:

1. $800 at 5% per annum

2. $2000 at 9% per annum

3. $500 at 12% per annum

4. $1000 at 11% per annum

5. $3000 at 15% per annum

6. $1400 for 4 years at 5% per annum

7. $800 for 4 years at 12% per annum

8. A person borrows $2000 for a period of 4 years at 20% simple interest. Calculate the amount of interest that the person must pay. 

9. Ken borrowed $2000 from Sam at 8% per annum. After 6 years he repaid it. Calculate the total he must repay.  

10. A bank is offering 3.5% simple interest on a savings account. If you deposit $7,500, how much interest will you earn in two years? 
b. What is the total which must be repaid?

11. Greg put $1,000 into an investment that had 6% annual interest. The money is left in the account for 2 years. What is the total that he will have?

12. A bank is offering 3.5% simple interest on a savings account. If you deposit $7,000, how much interest will you earn in two years? What is the total that you will have?

13. £2400 is deposited in a bank paying 0.5% simple interest per annum. How much interest will have been paid after 3 years?

14. £2500 is deposited in a bank paying 0.5% simple interest per annum. How much interest will have been paid after 18 years?

15. £700 is deposited in a bank paying 2% simple interest per annum. How much interest will have been paid after 3 years?





Thursday, October 6, 2022 

Use your notes and examples to assist you with the questions below. 

Section A - Calculate the INTEREST for numbers 1 and 2. 




Section b  - Calculate the TIME for the questions below. PLEASE WRITE YOUR FORMULA.

3. 





4. How long will it take for $350 to be the interest on a principal of $7000 at a rate of 2%?

5. How long will it take for $400 to be the interest on a principal of $1000 at a rate of 2%?

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