Simple Interest
$28.00 is earned on funds invested at a rate of 7% over four years. What was the amount of the original funds?
$100
What will the final balance be for $329 invested at 3% for six years?
$329 x 0.03 = 9.87 x 6 = 59.22 + 329 = 388.22
If the balance at the end of eight years on an investment of $203 that has been invested at a rate of 10% is $365.40, how much was the interest?
$365.40 - 203 = 162.40
A bank is offering 2.5% simple interest on a savings account. If you deposit $5000, how much interest will you earn in one year?
$5000 x .025 x 1 = $125
If an investment over two years at a rate of $59.60 results in a final balance of $655.60, what was the original investment?
$596
Bertha deposited $1000 into a retirement account when she was 18. How much will Bertha have in this account after 50 years at a yearly simple interest rate of 7.5%?
1000 x .075 x 50 = $3750
If the balance at the end of five years on a investment of $103 that has been invested at a rate of 10% is $154.50, how much was the interest?
154.50 - 103 = $51.50
TJ invested $4000 in a bond at a yearly rate of 2%. He earned $200 in interest. How long was the money invested?
200 = 4000 x .02 x t = 200 = 80t t = 2.5 years
Your final balance on an investment of $700 invested at 6% was $742.00. For what period of time did you invest?
700 x 6 x x/100 = 42x = (742 - 700) = x = 42/42 x=1
You invested $726 and received $987.36 after six years. What was the interest rate?
987.36 - 726 = 261.36 = 261.36 = 726 x R x 6 = 261.36 = 4356R
To buy a car, Jessica burrowed $15,000 for 3 years at an annual simple interest rate of 9%. How much interest will she pay if she pays the entire loan off at the end of the third year? What is the total amount that she will repay?
I = $15,000 x .09 x 3 = $4050 total amount = $15000 + 4050 = $19,050
Nancy invested $6000 in a bond at a yearly rate of 3%. She earned $450 in interest. How long was the money invested?
I = $450 P= $6000 R= 3% T= ? 450 = 6000 x .03 x t = 450 = 180t t = 2.5 years
Johns parents deposited $1000 into a savings account as a college fund when he was born. How much will john have in this account after 18 years at a yearly simple interest rate of 3.25%?
I = 1000 x .0325 x 18 = $585 total = 1000 +585 = 1585
Joshua borrowed $1000 from his friend and paid him back $1050 in six months. What simple annual interest did Joshua pay his friend?
I = 1050 - 1000 = $50 50 = 1000 x R x 1/2 = 50 = 500R R = .1 = 10%
To buy a laptop, Elaine borrowed $2000 for 3 years at an annual simple interest rate of 5%. how much interest will she pay if she pays the entire loan off at the end of the third year? What is the total amount that she will repay?
I = 2000 x .05 x 3 = $300 total amount = 2000 + 300 = $2300
What if I lend $2000, and the interest is 12% annually. How much interest do I earn if the loan is for 3 years?
I = 2000 x .12 x 3 = $720
Mr Mogi burrowed $9000 for 10 years to make home improvements. If he repaid a total of $20000 at what interest rate did he burrow the money?
I = 20000 - 9000 = $11,000 11,000 = 9000 x R x 10 = 11,000 = 9000R R = 0.12 = 12.2%
Equation
I = P x R x T
I burrow $1000 to be paid back in one year. My interest is 10%. How much do I pay in interest?
I =? P= 1000 R=10% T=1 I = 1000. x .10 x 1 = $100
Mr. Johnson burrowed $8000 for 4 years to make home improvements. If he repaid a total of $10,320, at what interest rate did he burrow the money?
I= 10320 - 8000 = 2320 2320 = 8000 x R x 4 = 2320 = 3200R R=0.0725
You borrow $500 to be paid back in two years. Your interest is 3%. How muchdo you pay in interest?
I= 500 times .03 times 2 = $30
If you received $32.64 on $136 invested at a rate of 4%, for how long did you invest the principal?
t = 32.64 = 136 x .04t = 32.64/5.44 = 5.445/5.44 = six years
