step by step simple interest-easy (1)

7/28/2019 Step by Step Simple Interest-easy (1)

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STEP BY STEP SIMPLE INTEREST* Round amounts to the nearest cent* Round interest rates and time periods to one decimal place

1. Calculate the interest earned (I).

a) P = $10,000r = 5%t = 3 years

b) P = $2,000r = 10%t = 10 yearsWhat is the final amount repaid?

c) P = $50,000r = 4.5%

t = 20 yearsWhat is the final amount repaid?

2. Calculate the principal of the loan (P).

a) I = $1440r = 6%t = 2 years

b) I = $9000r = 12%t = 15 years

c) I = $140r = 3.5%t = 8 years

3. Calculate the rate (r) of the following loans.

a) P = $20,000I = $3600t = 3 years

b) P = $5,000I = $2000t = 10 years


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c) P = $350I = $385t = 20 years

4. Calculate the time (t) of the following loans.

a) P = $3500I = $840r = 4%

b) P = $15,000I = $12,000r = 8%

c) P = $810

I = 850.50r = 15%

5. $8000 is borrowed at 4% for 5 years.a) How much simple interest is earned?

b) What is the total amount to be paid back?

6. A $25,000 loan at 8% earned $16000 interest. How long was the loan for?

7. A $1600 loan earns $114 interest in 9 months. What was the interest rate?

8. $1230 is borrowed at 15% for 6 months.a) How much simple interest is earned?


9. A $22,000 loan earns $5390 interest in 7 years. What was the interest rate?


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10. $8500 is borrowed at 7.5% for 26 weeks.a) How much simple interest is earned?


11. A loan at 10% earns $2775 interest in 5 years. What was the original amount

(principal) of the loan?

12. A loan at 4.5% earns $135 interest in 6 years. What was the original amount(principal) of the loan?

13. $6500 is borrowed at 20% for 2 years.a) How much simple interest is earned?


14. A $35000 loan earns $2625 interest in 3 years. What was the interest rate?

15. A $950 loan at 17.5% earned $665 interest. How long was the loan for?

16. A loan at 7.5% earns $900 interest in 3 years. What was the original amount(principal) of the loan?

17. A $9800 loan earns $8575 interest in 25 years. What was the interest rate?

18. A $1000 loan at 3.8% earned $114 interest. How long was the loan for?

19. A loan at 21% earns $8977.50 interest in 9 years. What was the original amount(principal) of the loan?

20. A $500,000 loan at 5% earned $75,000 interest. How long was the loan for?

21. A $1500 loan earns $183.75 interest in 3.5 years. What was the interest rate?


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22. Ernie borrowed $5500 for a new motor bike, to be paid back over 5 years.The bank is charging him 12% simple interest, calculated yearly. Calculate:

(a) the total interest that will be paid back,(b) the total to be paid back,

23. To buy a computer, Tom borrowed $3000 at 9% simple interest calculatedyearly. If he will be making monthly payments for four years, calculate:

(a) the amount of interest to be paid,(b) the total amount to be paid back,

24. When Jane bought her V.C.R., she borrowed $500 at 5% simple interest.The total interest payable over the period of the loan is $50. How many yearswill it take her to repay the loan?

25. Linda borrowed $1500 at 5% simple interest per year, for an overseas holiday.Over the period of the loan she will pay $250 in interest. How long was Linda'sloan for?

step by step simple interest-easy (1)

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