<< Chapter < Page | Chapter >> Page > |
Find the principal invested if $\text{\$15,222.57}$ interest was earned in $6$ years at an interest rate of $\text{10.28\%}.$
$24,679.91
Find the principal invested if $\text{\$10,953.70}$ interest was earned in $5$ years at an interest rate of $\text{11.04\%.}$
Find the rate if a principal of $\text{\$5,400}$ earned $\text{\$432}$ interest in $2$ years.
4%
Find the rate if a principal of $\text{\$2,600}$ earned $\text{\$468}$ interest in $6$ years.
Find the rate if a principal of $\text{\$11,000}$ earned $\text{\$1,815}$ interest in $3$ years.
5.5%
Find the rate if a principal of $\text{\$8,500}$ earned $\text{\$3,230}$ interest in $4$ years.
Solve Simple Interest Applications
In the following exercises, solve the problem using the simple interest formula.
Casey deposited $\text{\$1,450}$ in a bank account with interest rate $\text{4\%.}$ How much interest was earned in $2$ years?
$116
Terrence deposited $\text{\$5,720}$ in a bank account with interest rate $\text{6\%.}$ How much interest was earned in $4$ years?
Robin deposited $\text{\$31,000}$ in a bank account with interest rate $\text{5.2\%}.$ How much interest was earned in $3$ years?
$4,836
Carleen deposited $\text{\$16,400}$ in a bank account with interest rate $\text{3.9\%}.$ How much interest was earned in $8$ years?
Hilaria borrowed $\text{\$8,000}$ from her grandfather to pay for college. Five years later, she paid him back the $\text{\$8,000},$ plus $\text{\$1,200}$ interest. What was the rate of interest?
3%
Kenneth lent his niece $\text{\$1,200}$ to buy a computer. Two years later, she paid him back the $\text{\$1,200},$ plus $\text{\$96}$ interest. What was the rate of interest?
Lebron lent his daughter $\text{\$20,000}$ to help her buy a condominium. When she sold the condominium four years later, she paid him the $\text{\$20,000},$ plus $\text{\$3,000}$ interest. What was the rate of interest?
3.75%
Pablo borrowed $\text{\$50,000}$ to start a business. Three years later, he repaid the $\text{\$50,000},$ plus $\text{\$9,375}$ interest. What was the rate of interest?
In $10$ years, a bank account that paid $\text{5.25\%}$ earned $\text{\$18,375}$ interest. What was the principal of the account?
$35,000
In $25$ years, a bond that paid $\text{4.75\%}$ earned $\text{\$2,375}$ interest. What was the principal of the bond?
Joshua's computer loan statement said he would pay $\text{\$1,244.34}$ in interest for a $3$ year loan at $\text{12.4\%}.$ How much did Joshua borrow to buy the computer?
$3,345
Margaret's car loan statement said she would pay $\text{\$7,683.20}$ in interest for a $5$ year loan at $\text{9.8\%.}$ How much did Margaret borrow to buy the car?
Caitlin invested $\text{\$8,200}$ in an $\text{18-month}$ certificate of deposit paying $\text{2.7\%}$ interest. How much interest did she earn form this investment?
$332.10
Diego invested $\text{\$6,100}$ in a $\text{9-month}$ certificate of deposit paying $\text{1.8\%}$ interest. How much interest did he earn form this investment?
Airin borrowed $\text{\$3,900}$ from her parents for the down payment on a car and promised to pay them back in $15$ months at a $\text{4\%}$ rate of interest. How much interest did she owe her parents?
$195.00
Yuta borrowed $\text{\$840}$ from his brother to pay for his textbooks and promised to pay him back in $5$ months at a $\text{6\%}$ rate of interest. How much interest did Yuta owe his brother?
Interest on savings Find the interest rate your local bank pays on savings accounts.
Answers will vary.
Interest on a loan Find the interest rate your local bank charges for a car loan.
Why do banks pay interest on money deposited in savings accounts?
Answers will vary.
Why do banks charge interest for lending money?
ⓐ After completing the exercises, use this checklist to evaluate your mastery of the objectives of this section.
ⓑ On a scale of 1–10, how would you rate your mastery of this section in light of your responses on the checklist? How can you improve this?
Notification Switch
Would you like to follow the 'Prealgebra' conversation and receive update notifications?