Deck 6: Simple Interest

Question 1

A principal of $2,680 is invested for 2.5 years at a rate of 12%. What amount of interest will be earned?

A) $321.60
B) $3,001.60
C) $3,484.00
D) $290.33
E) $804.00

Answer 1

$804.00

Question 2

A $10,000 90-day term deposit earns 4.5% interest. How much will the depositor have at maturity?

A) $11,825.00
B) $10,110.96
C) $10,112.50
D) $112.50
E) $110.96

Answer 2

$10,110.96

Question 3

A principal of $790 grew to $1,000 in 14 months. What annual rate of simple interest was earned?

A) 1.89%
B) 15.23%
C) 9.67%
D) 18.00%
E) 22.78%

Answer 3

22.78%

Question 4

How much interest could you earn over 7 months on an investment of $49,000 at 14.75%?

A) $28,583
B) $422
C) $5,059
D) $508
E) $4216

Question 5

How much must be placed in a two-month term deposit earning 4.8% in order to earn $275 interest?

A) $12,500.00
B) $5,729.17
C) $23,333.33
D) $34,375.00
E) $53,333.33

Question 6

A deposit of $659 earns $15.10 interest at a rate of 4.5%. For how many days was this money on deposit?

A) 186
B) 51
C) 183
D) 191
E) 190

Question 7

Calculate the amount of interest that would be earned on an account of $59,500 at 7.2% for 133 days.

A) $4,284
B) $1,561
C) $1,013
D) $2,229
E) $3,771

Question 8

Calculate the amount of interest that would be earned on an account of $47,500 if it earned 6.4% for 293 days.

A) $89,072
B) $3,040
C) $2,440
D) $17,442
E) $11,298

Question 9

Calculate the amount of interest that would be earned on an account of $216,000 if it earned 5.15% for 27 days.

A) $11,298
B) $11,124
C) $823
D) $1,744
E) $2,110

Question 10

A 9-month term deposit, earning interest at 7%, was worth $72,559 when it reached maturity today. How much had been invested at the beginning of the term?

A) $76,368
B) $68,940
C) $72,552
D) $67,480
E) $70,000

Question 11

How much interest will be earned on $8,000 over a period of four months if the interest rate is 6.5%?

A) $7,830.34
B) $173.33
C) $169.66
D) $130.00
E) $26.00

Question 12

Calculate the amount of interest that would be earned on an account of $344,000 if it earned 4.95% for 37 days.

A) $17,028
B) $11,124
C) $991
D) $1,726
E) $2,110

Question 13

Determine the amount of (simple) interest that would be earned over eight months at 26% on an investment of $43,500.

A) $11,309.99
B) $2,352.48
C) $7,540.00
D) $6,786.00
E) $5,367.03

Question 14

If $450,000 is invested on June 3 at 7.75%, what will be the value of the investment on December 11?

A) $468,250
B) $466,625
C) $632,497
D) $432,461
E) $484,875

Question 15

How much interest could you earn over 2 months on an investment of $82,500 at 23.5%?

A) $3,231
B) $9,694
C) $6,942
D) $714
E) $4,216

Question 16

After how many days will a loan of $888 at 15% amount to $1554 (including accrued interest)?

A) 1825 days
B) 365 days
C) 100 days
D) 2,025 days
E) 525 days

Question 17

How much interest could you earn, over 5 months on an investment of $94,000 at 17.75%?

A) $39,167
B) $6,952
C) $8,342
D) $993
E) $4,216

Question 18

What principal will grow to $12,031.25 at 7.5% interest in 15 months?

A) $10,000.00
B) $11,000.00
C) $15,000.00
D) $20,000.00
E) $21,000.00

Question 19

In how many months will $6,000 earn interest of $2,700 at 15%?

A) 3 months
B) 36 months
C) 4 months
D) 60 months
E) 1 month

Question 20

How many days would it take for an investment of $9,000 to grow to $10,000 at 17%?

A) 214
B) 239
C) 126
D) 53
E) 66

Question 21

John borrowed $1500 at 9.5% on October 10, 2004. On what date did the amount owed first exceed $1565?

A) March 19, 2005
B) March 23, 2005
C) March 26, 2005
D) March 30, 2005
E) March 17, 2005

Question 22

Calculate the amount of money that would have to be invested at 8.5% to earn monthly interest of $3,000?

A) $255,000
B) $352,941
C) $355,491
D) $423,529
E) $521.449

Question 23

Morton purchased a 165-day Guaranteed Investment Certificate on October 11. On what date will it mature?

A) January 11 of the following year.
B) March 25 of the following year.
C) May 5 of the following year.
D) July 3 of the following year.
E) October 11 of the following year.

Question 24

Robert placed $7,000 in a 10-month term deposit paying 6.25%. How much will the term deposit be worth when it matures?

A) $3,645.83
B) $7,991.81
C) $7,364.58
D) $6,653.46
E) $7,769.89

Question 25

On March 14 Lisa invested in a 200-day term deposit. On what date will it mature?

A) January 16
B) March 23
C) August 24
D) September 30
E) November 7

Question 26

After 4 months how much interest would I have to pay on a loan of $500 if the rate of interest was 22%?

A) $11.25
B) $27.50
C) $36.67
D) $110.00
E) $39.74

Question 27

How much money would I have to invest at 6 ½% to earn interest of $4,500 per month?

A) $830,769
B) $692,308
C) $462,963
D) $777,667
E) $103,772

Question 28

What annual simple interest rate would be needed for $55,000 to grow to $60,000 over a term of 295 days?

A) 12.34%
B) 10.31%
C) 11.25%
D) 9.09%
E) 8.33%

Question 29

How much money would one have to invest today at 18.75% in order to have a total of $20,000 in 9 months?

A) $16,250
B) $23,750
C) $22,813
D) $17,534
E) $19,122

Question 30

Calculate the maturity value of an investment of $22,500 after 9 months at 13.45%.

A) $20,438.29
B) $4,736.25
C) $2,269.69
D) $27,236.25
E) $24,769.69

Question 31

After 7 months how much interest would I have to pay on a loan of $300 if the rate of interest was 32%?

A) $96.00
B) $47.50
C) $36.67
D) $56.00
E) $69.74

Question 32

What simple annual interest rate would you need to earn $2,000 interest in 147 days on an investment of $49,000?

A) 19.33%
B) 40.82%
C) 10.13%
D) 21.44%
E) 7.85%

Question 33

How many days will it take for an investment of $5,500 to earn $602.74 interest at 16%?

A) 68
B) 22
C) 230
D) 250
E) 4564

Question 34

Calculate the maturity value of a loan of $6,875 after 239 days at 18.3%.

A) $7,698.81
B) $7,991.81
C) $6,051.19
D) $8,238.13
E) $8,769.81

Question 35

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?

A) 7.5 months
B) 8.0 months
C) 8.5 months
D) 9.0 months
E) 9.5 months

Question 36

If $59,200 grows to $60,000 in 41 days what simple annual interest rate was earned?

A) 12.03%
B) 11.87%
C) 13.51%
D) 17.48%
E) 10.16%

Question 37

How long will it take for an investment of $9,000 at 3.75% to earn interest of $250?

A) 74 days
B) 163 days
C) 218 days
D) 270 days
E) 741 days

Question 38

What was the simple interest rate if an investment of $35,000 earned interest of $250 between April 4 and May 23?

A) 2.66%
B) 5.32%
C) 7.14%
D) 8.00%
E) 9.89%

Question 39

How much interest would one earn over 200 days on an investment of $95,000 at an interest rate of 14%?

A) $1,023
B) $5,889
C) $7,021
D) $7,288
E) $13,300

Question 40

Fred puts $5,475 into a term deposit on May 15^th. The deposit earns a simple interest rate of 4%. If the term deposit will mature on August 14^th, how much interest will Fred earn?

A) $35.40
B) $24.80
C) $36.00
D) $36.60
E) $54.60

Question 41

How much money would have to be invested from June 4 until December 22 at 13%, in order to earn $750 in interest?

A) $12,840
B) $5,769
C) $2,186
D) $10,477
E) $5,151

Question 42

How many months would it take to earn $1,650 interest on a deposit of $44,000 at 7 ½%?

A) 4.5 months
B) 12 months
C) 6 months
D) 5 months
E) ½ month

Question 43

Calculate the simple interest rate at which one can earn $2,200 per day interest on an investment of $8,500,000.

A) 9.45%
B) 25.86%
C) 3.86%
D) 13.61%
E) 7.30%

Question 44

Carly borrowed $2,500 from Clare on July 18 at an interest rate of 8%. On March 7 of the following year, Carly repaid the loan with interest. How much interest should she have paid?

A) $72.88
B) $21.63
C) $127.12
D) $112.50
E) $90.87

Question 45

How much money would I have to invest at 9 ½% to earn interest of $9,200 per month?

A) $1,830,769
B) $2,306,224
C) $1,162,105
D) $5,777,667
E) $1,903,772

Question 46

Cindy borrowed $750 from Clare on April 17 at an interest rate of 15%. On June 30 of the same year, Clare repaid the loan with interest. How much interest should she have paid?

A) $22.81
B) $21.63
C) $28.13
D) $112.50
E) $90.87

Question 47

Ethel invested $3,450 of Fred's money on February 3. Lucy had promised Ethel that the investment would earn an interest rate of 55%. On February 27 of the same year, Ethel cashed in her investment and received the interest as Lucy had promised. How much interest had she earned?

A) $124.77
B) $189.75
C) $218.63
D) $64.98
E) $90.87

Question 48

How much money would have to be invested from December 22 until June 4 at 12% in order to earn $750 in interest?

A) $12,840
B) $13,910
C) $6,250
D) $10,477
E) $15,151

Question 49

Calculate the simple interest rate at which one can earn $1,500 per day interest on an investment of $7,500,000.

A) 2.00%
B) 9.67%
C) 5.00%
D) 6.67%
E) 7.30%

Question 50

If, on March 11, $12,000 was placed in an investment earning an interest rate of 16%, on what day will the amount of interest earned reach $1,000?

A) Jul. 10
B) Jan.19
C) Apr. 13
D) Nov. 1
E) Sept. 18

Question 51

Carly borrowed $450 from Jenn on August 24 at an interest rate of 11%. On January 11 of the following year, Carly repaid the loan with interest. How much interest should she have paid?

A) $22.81
B) $12.38
C) $21.63
D) $18.99
E) $90.87

Question 52

How long would it take for a $45,000 investment to earn $6,000 interest at 17.5%?

A) 115 days
B) 77 days
C) 95 days
D) 377 days
E) 278 days

Question 53

What simple interest rate was used if Rocco charged Squirrel $350 interest on a loan of $2,000 for 41 days?

A) 70%
B) 156%
C) 14.35%
D) 15.58%
E) 175%

Question 54

How many months would it take to earn $3,570 interest on a deposit of $84,000 earning 8 ½%?

A) 7.5 months
B) 12 months
C) ¾ month
D) 9 months
E) 6 months

Question 55

How many months would it take to earn $3,300 interest on a deposit of $84,000 at 9 ½%?

A) 4.14 months
B) 4.96 months
C) 11.2 months
D) 15.3 months
E) 25.4 months

Question 56

Calculate the simple interest rate at which one can earn $500 per day interest on an investment of $1,800,000.

A) 9.45%
B) 28.00%
C) 10.14%
D) 12.91%
E) 25.30%

Question 57

How much money would have to be invested from November 22 until June 29 of the following year at 19%, in order to earn $950 in interest?

A) $8,333
B) $12,500
C) $5,000
D) $11,351
E) $6,306

Question 58

How long would it take for a $25,000 investment to earn $2,000 interest at 13.5%?

A) 271 days
B) 125 days
C) 59 days
D) 217 days
E) 169 days

Question 59

What simple interest rate was used if Eddie charged Meatball $700 interest on a loan of $5,000 for 26 days?

A) 217%
B) 156%
C) 14%
D) 88%
E) 197%

Question 60

If $20,000 was invested 82 days ago at an interest rate of 13.75%, what would be the value of the investment today?

A) $19,401
B) $20,618
C) $22,750
D) $20,000
E) $26,306

Question 61

How many months would it take for $3,500 to grow to $4,000 at 15%?

A) 9.5
B) 11.4
C) 348
D) 10.0
E) 6.6

Question 62

How much money would have to be deposited on March 11 into an account earning a simple interest rate of 9.5% if the goal is to have the deposit grow to $12,000 by November 1?

A) $10,860.00
B) $11,175.45
C) $14,098.36
D) $11,308.33
E) $11,497.44

Question 63

On December 19 Jerry's $800 deposit matured at $848.22. It had been earning 8%. What was the date that he made the deposit?

A) Oct. 2
B) Jan. 1
C) Mar. 19
D) Sept. 20
E) Apr. 1

Question 64

If the maturity value of an investment which paid 13.9% was $400,000 after 7 months, how much of that amount was interest?

A) $30,001
B) $55,600
C) $32,433
D) $67,888
E) $27,999

Question 65

Dalton loaned $550,000 to Doc Holliday on August 24. On February 8 of the following year, Doc paid to Dalton the $65,000 interest that had accumulated on the debt up to that time. What simple rate of interest was Dalton charging on this loan?

A) 21.90%
B) 25.68%
C) 21.79%
D) 74.32%
E) 24.69%

Question 66

Barkley's Bookkeeper is accounting for a cheque that was written for $29,674. It represents full payment of principal plus interest for a loan that was taken out for 128 days at 8.5%. How much of the $ 29,674 was interest?

A) $2,881.51
B) $884.52
C) $1,768.33
D) $858.93
E) $726.98

Question 67

Grandpa Smith has $200,000 in a bank account, which pays him interest at 4%. What is the largest amount of money that he could take out now and still leave enough in the account so that he can earn $500 per month in interest?

A) $60,000
B) $50,000
C) $120,000
D) $150,000
E) $30,000

Question 68

How many days would it take for $9,500 to grow to $10,000 at 7%?

A) 75
B) 188
C) 261
D) 365
E) 275

Question 69

Seven months ago Julie received some money for her birthday and she immediately deposited it into an account earning 6.5%. Today the value of that deposit has reached $4,259.88. How much did she deposit 7 months ago?

A) $1,556.20
B) $4,104.26
C) $4,098.36
D) $3,982.99
E) $2,646.45

Question 70

On September 4 Fred made a $25,000 loan to Ricky for an investment that was guaranteed to earn an interest rate of 40%. On March 11 of the following year, Ricky cashed in his investment and received the interest as had been promised. How much interest had he earned?

A) $2,965
B) $5,151
C) $2,186
D) $4,849
E) $16,083

Question 71

On May 27, Kristina made an investment that earned an interest rate of 9.4%. By November 6 the investment's value had increased to $77,000. What amount of interest had Kristina earned?

A) $3,619
B) $3,102
C) $3,232
D) $5,112
E) $7,238

Question 72

On April 3 Artie invested $75,000 and by October 27 he had earned interest of $10,500. What simple interest rate had he earned?

A) 86.00%
B) 32.34%
C) 71.42%
D) 14.00%
E) 24.69%

Question 73

At what simple annual interest rate would $1,896 grow to $2,000 in 300 days?

A) 6.7%
B) 8.5%
C) 7.8%
D) 5.5%
E) 6.3%

Question 74

At what simple annual interest rate would $835 grow to $900 in 5 months?

A) 16.7%
B) 4.5%
C) 7.8%
D) 18.7%
E) 17.3%

Question 75

An investment of $ 19,250 grew to $20,000 between March 26 and October 10. What simple annual interest rate did the investment earn?

A) 3.9%
B) 8.5%
C) 6.9%
D) 5.5%
E) 7.2%

Question 76

Grandma Jones has $300,000 in a bank account, which pays her interest at 3%. What is the largest amount of money that she could take out now and still leave enough in the account so that she can earn $600 per month in interest?

A) $60,000
B) $100,000
C) $280,000
D) $240,000
E) $9,000

Question 77

Albert loaned $850,000 to Batman on March 17. On January 9 of the following year, Batman paid to Albert the $49,000 of interest that had accumulated on the debt up to that time. What simple rate of interest was Albert charging on this loan?

A) 7.06%
B) 25.68%
C) 31.40%
D) 9.65%
E) 17.34%

Question 78

After 7 months at an interest rate of 13%, an investment matured today at a value of $80,000. How much of the $80,000 is interest?

A) $12,065
B) $10,400
C) $6,067
D) $7,436
E) $5,639

Question 79

On what day will the amount of interest earned reach $5,000 if $250,000 was invested at an interest rate of 11% on June 23?

A) Mar. 8
B) Jul. 10
C) Aug. 29
D) Nov. 1
E) Dec. 18

Question 80

Susan wants a 120-day extension on a payment of $2,000. If she and her creditor agree that money can now earn 6%, what amount should she pay at the later date?

A) $1,961.31
B) $2,038.69
C) $2,079.95
D) $2,039.45
E) $2,080.55