Question

1. Calculate the simple interest paid on each deposit.
a) $600 invested at an annual interest rate of 3% for 2 years
b) $1800 invested at an annual interest rate of 4% for 5 years
c) $380 invested at an annual interest rate of 6% for 3 years
d) $15 000 invested at an annual interest rate of 8% for 2 years

2. Calculate the simple interest and the amount.
a) $1200 invested at an annual interest rate of 8% for 6 months
b) $800 invested at an annual interest rate of 5% for 9 months
c) $7500 invested at an annual interest rate of 6% for 18 months
d) $50 000 invested at an annual interest rate of 2% for 8 months

3. Ali borrows $8000 at a rate of 6% per year for 5 years. He pays back the money in equal monthly payments over the 5 years.
a) What simple interest does he pay?
b) What is each monthly payment?

4. Ali has a $3000 savings bond. He has had the bond for 5 years. The bond paid 2% interest per year. Ali cashes the bond.
a) What simple interest does Justin receive?
b) What amount will Ali receive?

5. Lebron invested $40 000 at a simple interest rate of 6.5% per year. How much will Lebron earn in 1 year?

Answer 1

Answer:

Calculate the simple interest paid on each deposit.

a) $600 invested at an annual interest rate of 3% for 2 years

b) $1800 invested at an annual interest rate of 4% for 5 years

c) $380 invested at an annual interest rate of 6% for 3 years

d) $15 000 invested at an annual interest rate of 8% for 2 years

2. Calculate the simple interest and the amount.

a) $1200 invested at an annual interest rate of 8% for 6 months

b) $800 invested at an annual interest rate of 5% for 9 months

c) $7500 invested at an annual interest rate of 6% for 18 months

d) $50 000 invested at an annual interest rate of 2% for 8 months

3. Ali borrows $8000 at a rate of 6% per year for 5 years. He pays back the money in equal monthly payments over the 5 years.

a) What simple interest does he pay?

b) What is each monthly payment?

4. Ali has a $3000 savings bond. He has had the bond for 5 years. The bond paid 2% interest per year. Ali cashes the bond.

a) What simple interest does Justin receive?

b) What amount will Ali receive?

5. Lebron invested $40 000 at a simple interest rate of 6.5% per year. How much will Lebron earn in 1 year?