Simple Interest

1. James invests £200 for 1 year in a bank account.

The account pays simple interest at a rate of 3% per year.

Work out the total amount of money in the account at the end of the
year.

£...........................
...
(2)
2. Sami invested £400 for 2 years at 5% per year simple

interest. Work out the total interest Sami gets.

£...........................
...
(3)

3. Carolyn invested £700 for 3 years at 2% per annum simple interest.

Work out the total amount of interest Carolyn earned.

£..........................
....
(3)
4. £2700 is invested for 2 years at 5% per year simple
interest.

Work out the total interest.

£...........................
...
(3)

5. Faith invests £800 for 3 years in a bank account.

The account pays simple interest at a rate of 0.4% per year

Work out the total amount of interest Faith has got at the end of the 3
years.

£..............................
(3)

6. Nina invested £1500 for 4 years at 2.5% per annum simple interest.

Work out the total amount of money in the account at the end of 4
years.

£..........................
....
(3)
7. Mary invests £8000 in an account paying 1.2% simple interest

each year. Calculate the amount of money in her account after

2 years.

£...........................
...
(3)
8. £12500 is invested for 5 years at 1.1% per year simple

interest Work out the total interest.

£...........................
...
(3)
9. Jonah invests £400 in a bank account that pays 3.5% simple interest
per year.

3
At the end of each year Jonah spends of the interest and gives the
rest to his5
brother.

How much money does Jonah give to his brother each year?

£..............................
(4)

10. Evie is saving up to buy a guitar that costs £109.

She opens an account at Corbett Bank that pays 3% per annum simple
interest.

She puts £800 into the account.

Evie does not make any deposits or withdrawals.

After how many whole years will Evie have earned enough interest
to buy the guitar?

..............................
(4)
11. Johanna invests £800 for 20 years in a bank account paying
simple interest. At the end of the 20 years, she has earned £320
interest.

Work out the annual rate of interest.

…………………………%
(3)

12. Percy invests £2000 for 4 years in a savings account that pays
simple interest. At the end of the 4 years, Percy has £2140 in the
account.

Work out the annual rate of simple interest.

…………………………%
(3)
13. Solomon wants to invest £600 for 3 years.

Which bank should Solomon choose?

……………………………………
(4)

14. Laura invests £2400 in an account that pays 1.2% simple interest
per annum. She invests the money for 5 years.

At the end of each year Laura gives the interest to her two sisters,
Hannah and Freya in the ratio 3:7

How much money does Freya receive in total?

£..............................
(5)
15. Jaxon invests £3000 in a bank account that pays 2% simple interest
per year. He invests the money for 7 months.

Calculate the amount of interest Jaxon earns.

£...........................
...
(3)

16. Nicole invested some money for 3 years into an account that pays
2% per year simple interest.

She earned £7.20 interest in total.

How much money did Nicole originally invest?

£...........................
...
(3)
17. Noah invests some money in an account that pays 1.5% per
year simple interest for 4 years.

George invests the same amount of money in an account that pays y

% per year simple interest for 3 years.

At the end of their investments, Noah and George both had the same
amount of money in their accounts.

Work out the value of y.

..............................
(4)
18. Luisa plans to invest £600 in a savings account for 3 years.
She visited two banks and made some notes on the interest rates they
offered.

Bank A offers simple interest of 0.8%, rounded to one decimal

place. Bank B offers simple interest of 0.7%, truncated to one
decimal place.

Luisa says that she will earn more money if she invests her money in
Bank A.

(a) Explain why she may be wrong.

……………………………………………………………………………………………

……………………………………………………………………………………………

……………………………………………………………………………………………

……………………………………………………………………………………………
(2)

Bank C offers simple interest of 0.9%

(b) Work out the total amount of interest Luisa will earn if she invests
in Bank C

£..............................
(3)