Simple Interest - Questions - Class Mathematics School Portal

Simple Interest - Questions

Question 1

What is the interest earned on an investment of $$75,000$ at a flat rate of $1\%$ every month after $8$ years?

Answer

$$72,000$

Worked Solution

Question 2

Calculate the amount of simple interest on a loan of $90,000. Interest rate is 8.25% p.a. for a period of 30 months

Answer

$\$ 18,562.50$

Worked Solution

Question 3

A sum of $120000 was borrowed for 5 years at a simple interest rate of 5.5% p.a. What amount is owed after 5 years?

Answer

$\$ 153000$

Worked Solution

Question 4

Mr. Singh is starting his coffee shop in Albuquerque. For initial capital, he takes a loan of $$15000$ from the bank. He is given the loan at $9\%$ annual interest rate for a term of $5$ years.

a) Find the interest charged to Mr. Singh after $18$ months.
b) Find the interest charged to Mr. Singh over the complete term of the loan.

Answer

a) $$2025$ b) $$6750$

Worked Solution

Question 5

Jim invests $20,000 for 4 years and receives $3,200 in interest. Betty invests $20,000 for 3 years and receives $2,700 in interest. What are their flat rates of interest?

Answer

Jim: 4% p.a. Betty: 4.5% p.a.

Worked Solution

Question 6

In how many years will $150 earn the same interest at 8%p.a flat rate as $800 earns in 3 years at 4.5%p.a?

Answer

$9$ years

Worked Solution

Question 7

A simple interest loan of $30,000 is taken out over 3 years. The rate of interest is 9% per annum. Calculate the total amount to be repaid.

Answer

$$38100$

Worked Solution

Question 8

Billy buys a computer for $2200. He pays it off monthly over 2 years at a flat interest rate of 12% p.a. How much per month will he pay?

Answer

$\$ 113.67$

Worked Solution

Question 9

Calculate the amount of interest on a loan of $32,000 at 6.25% p.a. for a period of 15 months

Answer

$\$ 2500$

Worked Solution

Question 10

A sum of $320,000 was borrowed for 7 years at a flat rate of 4.5% p.a. What was the amount owed after 7 years?

Answer

$\$ 420,800$

Worked Solution

Question 11

A loan of $2400 is taken out at 12.5% (simple interest) per annum. How much is owed, in total, after 4 months?

Answer

$$2500$

Worked Solution

Question 12

The minimum monthly balances for three consecutive months are: $250, $360, $480.

How much interest is earned over the three-month period if it is calculated at 4% (simple interest) per annum.

Answer

$6.50

Worked Solution

\begin{aligned}
I &=(250 \times 3 + 360 \times 2 +480) \times \frac{4}{100} \times \frac{1}{12}\\
&=\$6.50
\end{aligned}

Question 13

Calculate the simple interest earned on an investment of $2000 at 5% p.a. for 8 months

Answer

$\$66.67$

Worked Solution

Question 14

Calculate the simple interest earned on an investment of $2000 at 7.3% p.a. for 105 days

Answer

$\$42.00$

Worked Solution

Question 15

Calculate the simple interest earned on an investment of $6000 borrowed for 16 months at 7.5%

Answer

$\$600.00$

Worked Solution

Question 16

How many years will it take for an investment of $20,000 to earn $12,000 in interest if the simple interest rate is 7.6% p.a.? Round up the answer to nearest whole number.

Answer

8 years

Worked Solution

Question 17

How many days will it take for $45000 to earn $547.92 in interest if the flat rate of interest is 6.2%? Round up the answer to nearest whole number

Answer

72 days

Worked Solution