Worksheet: Simple Interest

In this worksheet, we will practice solving problems on simple interest.

Q1:

Scarlett invests £ 1 , 0 0 0 into an Individual Savings Account at the beginning of the year. An interest rate of 2 . 5 % is paid monthly on the balance in the account. How much money does Scarlett have in her Individual Savings Account at the end of the year if no other deposits or withdrawals are made and the interest rate stays constant?

Q2:

Daniel and Ethan work at two different companies. Daniel is paid £ 2 8 0 0 0 in the first year and gets a 3 % pay increase each year. Ethan is paid £ 3 0 0 0 0 in the first year and gets an increase of £ 1 2 5 0 every two years. Who is paid the most in the tenth year?

  • ADaniel
  • BEthan

Q3:

Benjamin deposited $2,420 in a savings account, and it earned $363.00 in simple interest after five years. Find the interest rate on Benjamin’s savings account.

Q4:

A woman opened a bank account that offered 2 0 . 7 % interest per year. Given that she kept 6,000 LE in the account for a year, find the total amount she has after the interest is added.

Q5:

The formula 𝐼 = 𝑝 𝑟 𝑡 represents the simple interest 𝐼 earned on an account, where an amount 𝑝 is deposited at an interest rate 𝑟 for a certain number of years 𝑡 . Use the table to order the accounts from least to greatest in terms of the interest earned after 2 years.

Account 𝑝 ($) 𝑟 ( % )
A 390 4
B 490 3
C 940 4.75
  • AA, B, C
  • BC, A, B
  • CC, B, A
  • DB, C, A
  • EB, A, C

Q6:

David deposited $500 in his new bank account at a simple interest rate of 5 . 6 8 % . If he made no further deposits or withdrawals, how much money will be in his account after 2 1 2 years?

Q7:

Find the simple interest earned in a savings account given that $552 is deposited for 7 months with an interest rate of 1 6 . 5 % per year.

Q8:

Benjamin had $820,000. He paid $250,000 in taxes and invested the rest in a savings account with a 4 . 9 5 % simple interest. Determine the amount of money in Benjamin’s account if he makes no deposits or withdrawals for two years.

Q9:

Jacob borrowed money at an interest rate of 1 8 % for 3 months to buy a used car. If the average cost of a used car is $4,100, determine, to the nearest cent, the total cost Jacob paid including the interest on the loan.

Q10:

If Jennifer invested $4,500 in a certificate of deposit for 5 years and earned $765, determine the rate of interest.

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