Worksheet: Simple Interest

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

Q1:

Scarlett invests £1,000 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 £28,000 in the first year and gets a 3% pay increase each year. Ethan is paid £30,000 in the first year and gets an increase of £1,250 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 20.7% 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=𝑝𝑟𝑡 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 years𝑡. Use the table to order the accounts from least to greatest in terms of the interest earned after 2 years.

Account𝑝($)𝑟(%)
A3904
B4903
C9404.75
  • AB, A, C
  • BC, A, B
  • CC, B, A
  • DA, B, C
  • EB, C, A

Q6:

David deposited $500 in his new bank account at a simple interest rate of 5.68%. If he made no further deposits or withdrawals, how much money will be in his account after 212 years?

Q7:

Find the simple interest earned in a savings account given that $552 is deposited for 7 months with an interest rate of 16.5% per year.

Q8:

Liam had $820,000. He paid $250,000 in taxes and invested the rest in a savings account with a 4.95% simple interest. Determine the amount of money in Liam’s account if he makes no deposits or withdrawals for 2 years.

Q9:

Jacob borrowed money at an interest rate of 18% 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.

Q11:

You invested $80,000 in two accounts: $22,000 in account A and $58,000 in account B. Both accounts earn simple interest and, after one year, you have earned $2,470 in interest. Given that account B earns half a percent less than twice the interest account A earns, what are the interest rates for your accounts?

  • AAccount A: 3.5%, account B: 2%
  • BAccount A: 2.9%, account B: 1.7%
  • CAccount A: 2%, account B: 3.5%
  • DAccount A: 1.5%, account B: 2.5%

Q12:

At the beginning of a year, you invested $10 000 into two accounts, A and B, which receive 8% simple interest and 5% simple interest respectively. At the end of that year, you had $10 710 in your combined accounts. How much was invested in each account?

  • Aaccount A: $8 000, account B: $2 000
  • Baccount A: $5 000, account B: $5 000
  • Caccount A: $3 000, account B: $7 000
  • Daccount A: $7 000, account B: $3 000

Q13:

An investor invests $23,000 into two bonds, where one pays 4% in simple interest and the other 2%. If the investor earns $710.00 in annual interest, how much is invested in each account?

  • A4% account: $10,000, 2% account: $13,000
  • B4% account: $13,000, 2% account: $10,000
  • C4% account: $4,167, 2% account: $18,833
  • D4% account: $10,500, 2% account: $12,500
  • E4% account: $12,500, 2% account: $10,500

Q14:

One year ago, you invested $10 000 into two accounts that pay simple interest annually: account A, which pays 3% interest, and account B, which pays 2.5% interest. Given that, after one year, you earned $283.50 in interest, how much is there in each account now?

  • Aaccount A: $2 000, account B: $8 000
  • Baccount A: $7 165, account B: $2 835
  • Caccount A: $6 700, account B: $3 300
  • Daccount A: $3 300, account B: $6 700

Q15:

Noah invested a total of $25000 into two bonds that both pay simple interest annually; one pays 3% interest, and the other pays 2.875% interest. After one year he earned $737.50 interest. How much was invested in each account?

  • Athe 3% account: $17000, the 2.875% account: $8000
  • Bthe 3% account: $20000, the 2.875% account: $5000
  • Cthe 3% account: $15000, the 2.875% account: $10000
  • Dthe 3% account: $16000, the 2.875% account: $9000

Q16:

You invested $2,300 in account 1, and $2,700 in account 2, which both pay simple interest annually. If the total amount of interest after one year is $254, and account 2 has 1.5 times the interest rate of account 1, what are the interest rates?

  • A6% for account 1, 4% for account 2
  • B4% for account 1, 6% for account 2
  • C11% for account 1, 9% for account 2
  • D2.3% for account 1, 2.74% for account 2

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