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Math - P301 - Simple Interest

1. Calculate interest earned over 8 years on $800 at 2.5% annual interest rate ($160) 2. Calculate account balance after 5 years on $6000 at 4% annual interest rate ($7200) 3. Calculate time required to earn $1680 interest on $5600 at 6% annual interest rate (5 years) 4. Calculate simple interest rate on $5000 loan that earned $1350 interest over 6 years (162%)

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Carlos Olivero
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44 views2 pages

Math - P301 - Simple Interest

1. Calculate interest earned over 8 years on $800 at 2.5% annual interest rate ($160) 2. Calculate account balance after 5 years on $6000 at 4% annual interest rate ($7200) 3. Calculate time required to earn $1680 interest on $5600 at 6% annual interest rate (5 years) 4. Calculate simple interest rate on $5000 loan that earned $1350 interest over 6 years (162%)

Uploaded by

Carlos Olivero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Math 10th Simple Interest

Section First Name Last Name Date


10A Carlos Olivero 1/25/2022

Write the correct answer for each problem. Show all process.
Problem
1. Dianna deposits $800 into a savings account that pays 2.5% simple annual interest.
How much interest will Dianna earn after 8 years?
Formula: Interest = Principal x Interest Rate x Time

In this case, the principal is $800 , the interest rate is 2.5% (expressed as a decimal), and the
time is 8 years.

So:
Interest = $800 x 0.025 x 8 Interest = $160 Therefore, Diana will earn $160 in interest after 8 years.
2. Eduardo deposit $6000 in a savings account that pays 4% simple annual interest.
Find his account balance after 5 years.
Formula: Interest = Principal x Interest Rate x Time

In this case, the principal is $6000, the interest rate is 4% (expressed as a decimal), and the time is
5 years.

So:
Interest = $6000 x 0.04 x 5 = $1200

To find the account balance, we add the interest to the principal: Account balance: Principle + Interest
Account Balance = $6000 + $1200 = $7200

Therefore, Eduardo's account balance after 5 years will be $7200.

3. How long must a capital of $ 5,600 at a simple 6% be placed to obtain,


at the end of the period, an interest of $ 1,680?
Time = Interest / (Principal x Interest Rate)

In this case, the principal is $5600, the interest rate is 6% (expressed as a decimal), and the interest is $1680. So:

Time = $1680 / ($5600 x 0.06)

Solving for Time:

Time = $1680 / $336 = 5 years

Therefore, the capital of $5600 at a simple 6% must be placed for 5 years to obtain an interest rate of $1680
4. Alex borrows a loan of $ 5,000, and pay back an interest of $ 1,350 within 6 years.
Calculate the simple interest rate applied to the loan.
Formula:Simple Interest Rate = (Interest / Principal) x (Number of Years)

In this case:
Simple Interest Rate = (1350 / 5000) x 6 = 0.27 x 6 = 1.62 or 162%

So the simple interest rate applied to the loan is 162%.


5. Peter deposit $18,000 in a savings account that pays 4% simple annual interest.
Find his account balance after 9 months.
Formula:Simple Interest = Principal x Interest Rate x Time

In this case, we first need to calculate the interest for 9 months.

Interest = (18,000 x 0.04) x (9/12) = $540

To find the account balance after 9 months, we add the interest to the principal:

Account Balance = Principal + Interest = 18,000 + 540 = $18,540

So Peter's account balance after 9 months is $18,540


6. How long must a capital of $ 5,600 at a simple 6% be placed to obtain,
at the end of the period, an interest of $ 1,680?
Formula:Time = (Interest / (Principal x Interest Rate))

In this case, we're trying to find the time required to earn $1,680 in interest on a $5,600 principal at a 6% interest rate.

Time = (1680/(5600*0.06)) = (1680/336) = 5

So the capital must be placed for 5 years to obtain $1,680 at the end of the period.
7. An investment of $6,000 that has accrued $3,000 at a 5% annual simple interest rate.
How much time has passed since the investment was made?
Formula:Time = (Interest / (Principal x Interest Rate))

In this case, we're trying to find the time passed since the investment of $6,000 was made that has accrued $3,000 at a 5% annual sim

Time = (3000/(6000*0.05)) = (3000/300) = 10

So it has been 10 years since the investment was made.


8. Consider a loan for $20,000 that has accrued interest of $12,000 at a 7.5% annual simple interest rate.
How much time has passed since the loan was made?
Time = (Interest / (Principal x Interest Rate))

In this case, we're trying to find the time passed since the loan of $20,000 was made that has accrued $12,000 at a 7.5% annual simpl

Time = (12000/(20000*0.075)) = (12000/1500) = 8

So it has been 8 years since the loan was made.


9. Today Alex asks his friend Pedro for a loan of $ 1,000, and promises to repay him $ 1,135 within 6 months.
Calculate the simple interest rate applied to the loan.
By rearranging the formula:
r = I / (P * t)

We can substitute the given values:


r = ($135) / ($1000 * 0.5)

The simple interest rate on the loan is 27%.


10. An investment earned $375 simple interest on an original investment of $5,000 over three years.
What is the simple interest rate on this investment?

In this case, the interest earned is $375 and the original investment amount is $5,000. The number of years th
was held is 3.
So the rate is :
(375/5000) * 3 = 0.075 or 7.5%

So, the simple interest rate on this investment is 7.5%.


11. A loan has accrued $400 in interest on an original amount borrowed of $1,000 over five years.
What is the simple interest rate on this loan?
In this case, the interest earned is $400 and the original loan amount is $1,000. The number of years the loan
So the rate is:
(400/1000)*5 = 0.2 or 20%

So, the simple interest rate on this loan is 20%.


12. You deposit $8000 in a savings account that pays 3.2% simple annual interest.
Find your account balance after 30 months.
To convert the annual interest rate of 3.2% to a monthly rate, you will divide it by 12:
3.2/12 = 0.2667%

Then you can multiply the monthly interest rate by the initial deposit to find the monthly interest earned:
0.2667% * $8000 = $21.33

So you will earn $21.33 of interest each month. Now you can add that to the initial deposit, to find the account balance after 30 months
$8000 + (30 * $21.33) = $8000 + $640 = $8640

So, your account balance after 30 months would be $8640.

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