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Goal

 :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       1  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               
GMF10 Mr. Storey
Name ________ _________ Date Sept 26, 2018 Period ____

Simple interest is a percentage of the amount invested or


borrowed

I = P x r x t or I = Prt

I = simple interest
P = principal (amount invested or borrowed)
r = interest rate (as a decimal)
t = term (time in years)

Examples: Show your work.

1. Calculate the amount of interest on a loan of $3000


borrowed for 4 years at 6.5%/a. (Ans: I=$780)

2. $4080 in interest is earned when $24 000 is invested for 2


years. What was the interest rate? (Ans: Interest Rate=8.5%)
   

3. How much money was borrowed if $930 in interest


was charged at 3%/a for 2 years? (Ans: P=$15 500)

4. For how many years would $44 000 have to be invested at


1%/a to earn $3960 in interest? (Ans: t = 9 years)

  1  
Goal  :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       2  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               
Practice: Show all your work.
1. At what rate of interest would $50 900 have to be
invested at to earn $4072 in interest after 8 years?

2. What is the interest charged if $58 600 is borrowed at


9%/a for 6 years?

3. For how many years does $2600 is invested at 13%/a to


earn $2028 in interest?

4. Sam is charged $240 in interest for borrowing money for 2

years at 10%/a. How much did she borrow?

  2  
Goal  :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       3  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               
Converting Time Units
1 year = 365 days # days # years
(write # to 4
# years # days
decimal places)
1. 3
6. 90
2. 4.5
7. 150
3. 1.5
8. 60
4. 6
9. 180
5. 0.5
  10. 300
 

1 year = 12 months

# years # months # months # years


11. 3 16. 30
12. 2 17. 72
13. 3.5 18. 42
14. 0.75 19. 18
15. 0.5 20. 3
   

  3  
Goal  :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       4  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               
Show all your work.

1. How much interest is earned on an $1500 invested at


2.5%/a for 30 months?

2. $640 is borrowed at 9.8%/a and $25.78 in interest is


charged. How many days was the money borrowed?

3. $250 in interest is earned when money is invested for


5 years at 11¼%/a. How much money was invested?

4. $2400 is invested for 120 days and earns $98.63 in


interest. What is the interest rate as a percent?

5. How many months will it take for $1200 to earn $78


interest at 9.75%/a?

6. $5400 is invested at 5%/a for 3 months. How much


interest is earned?

  4  
Goal  :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       5  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               

Practice: Show all your work for each question.

1. Find the amount of the loan in which $422.50 in interest is


charged for borrowing money at 3¼%/a for 2 years.

2. $4000 is invested at 1¾%/a and earns $105 in interest. For


how many months was the money invested?

3. How much money was borrowed if $429 was charged for


borrowing the money for 3 years at 6.5%/a?

4. How much interest is charged for borrowing $3600 at


4½%/a for 150 days?

  5  
Goal  :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       6  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               
5. $30 000 is invested for 2 years and earns $2550 in
interest. What is the interest rate?

6. Find the missing variable. Show your work.

Principal Rate Term Interest


a. $1800 2¼%/a 90 days ?
b. $2600 4.4%/a months? $171.60
c. $16 000 ? 30 months $900
d. ? 1.78%/a 2 years $192.24
e. $25 000 ? 6 months $812.50

  6  
Goal  :  use  the  simple  to  calculate  the  interest  and  amount  of  the  loan  or  investment       7  
Simple Interest CW/AK
                                                                                                                                                                                                                                                               

Answer Key

Page 2 1) R=1% 2) I=$31 644 3) t=6 years 4) P=$1200

Page 3 # days # years


# years # days
(write # to 4
1. 3 1095
decimal places)
2. 4.5 1642.5
6. 90 0.2466
3. 1.5 547.5
7. 150 0.4110
4. 6 2190
8. 60 0.1644
5. 0.5 182.5
  9. 180 0.4932
10. 300 0.8219
 

# years # months # months # years


11. 3 36 16. 30 2.5
12. 2 24 17. 72 6
13. 3.5 42 18. 42 3.5
14. 0.75 9 19. 18 1.5
15. 0.5 6 20. 3 0.25
  0.25  

Page 4 1) I=$93.75 2) 150 days 3) P=$444.44


4) 12.5% 5) 8 months 6) I=$67.50

Page 5 & 6 1) P=$6 500 2) 18 months 3) P=$2 200 4) I=$66.58


5) 4.25% 6) a) $9.99 b) 18 months c) 2.25% d)
P=$5400 6) e) 6.5%

  7