Exercises: Simple Interest

Show your work for each problem. Round dollar amounts to the nearest cent where needed.

Grade 7·22 problems·~30 min·Common Core Math - Percents·lesson·lesson-simple-interest

Work through problems with immediate feedback

Warm-Up: Percents and Decimals

These problems review skills you need for simple interest.

Which decimal is equal to 3%?

3.0

0.3

0.03

0.003

Calculate: $800 \times 0.05 \times 2$

A savings account pays 4% interest per year on the amount you deposit. After one year, a student earns $20 in interest. Which amount was most likely deposited?

$80

$200

$500

$800

Practice: Applying I = Prt

Use the simple interest formula $I = Prt$ to find the interest.

Find the simple interest on a $600 deposit at 5% per year for 3 years.

A student borrows $1,200 at 8% annual interest for 2 years. How much interest does the student owe?

Complete the calculation for $I = Prt$ where $P = \text{\char"0024}400$ , $r = 6\%$ , $t = 4$ years.

Step 1: Convert rate to decimal: $r =$ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲

Step 2: $I = 400 \times$ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ $\times 4 =$ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲ ̲

r as decimal:

r in formula:

What is the total amount (principal + interest) in an account after depositing $750 at 4% per year for 5 years?

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