Question

1. Calculate (a) the interest payable and (b) the total amount owing on the following
deposits at simple interest.
(i) £300 borrowed for 5 years at 8% p.a.
(ii) £1000 invested for 4 years at 9.5% p.a.
(iii) £50 borrowed for 2 years at 18% p.a.
(iv) £2500 invested for 6 months at 8.75% p.a. (T = 0.5 years)
(v) £45 000 borrowed for 2 weeks at 15.5% p.a.

The following questions relate to simple interest.
2. What is the actual rate of interest if £4000 deposited for 3 years attracts interest of
£1440?
3. For how long would £500 have to be left in an account paying 4% interest p.a. to
give a balance of £600 ?
4. A school's rich benefactor wants to deposit a certain sum in an account paying
interest at 10.5% so that it will produce interest of £1200 per year, to pay for
scholarships. How much should she deposit?
5. A boy borrows £1.00 from his sister and promises to pay back £1.10 a week later.
What is this as an annual rate of interest?
6. For how long should a depositor leave a sum in a 6.25% p.a. savings account in
order to earn the same amount in interest, assuming the interest is withdrawn each
year?

Answer 1

1. Calculate (a) the interest payable and (b) the total amount owing on the following

deposits at simple interest.

(i) £300 borrowed for 5 years at 8% p.a.

(ii) £1000 invested for 4 years at 9.5% p.a.

(iii) £50 borrowed for 2 years at 18% p.a.

(iv) £2500 invested for 6 months at 8.75% p.a. (T = 0.5 years)

(v) £45 000 borrowed for 2 weeks at 15.5% p.a.

The following questions relate to simple interest.

2. What is the actual rate of interest if £4000 deposited for 3 years attracts interest of

£1440?

3. For how long would £500 have to be left in an account paying 4% interest p.a. to

give a balance of £600 ?

4. A school's rich benefactor wants to deposit a certain sum in an account paying

interest at 10.5% so that it will produce interest of £1200 per year, to pay for

scholarships. How much should she deposit?

5. A boy borrows £1.00 from his sister and promises to pay back £1.10 a week later.

What is this as an annual rate of interest?

6. For how long should a depositor leave a sum in a 6.25% p.a. savings account in

order to earn the same amount in interest, assuming the interest is withdrawn each

year?

Answer 2

Answer:

Step-by-step explanation:

For how long should a depositor leave a sum in a 6.25% p.a. savings account in

order to earn the same amount in interest, assuming the interest is withdrawn each

year?