3.3 Worksheet-Simple Interest

1. Gary deposits $3,700 in an account that pays 2.15% simple interest. He keeps the money in the account for three years, but doesn't make any deposits or withdrawals. How much interest will he receive after the three years?

2. How much simple interest is earned on $6,000 at an interest rate of 4.25% in 4½ years?

3. How much principal would you have to deposit to earn $700 simple interest in 1½ years at a rate of 4%?

4. Jesse estimates that it will cost $300,000 to send his newborn son to a private college in 18 years. He currently has $65,000 to deposit in an account. What simple interest rate would he need so that $65,000 grows into $300,000 in 18 years? Round to the nearest percent.

5. Dillon has a bank account that pays 3.2% simple interest. His balance is $1,766. How long will it take for the amount in the account to grow to $2,000? Round to the nearest year.

6. How long will it take $5,000 to double in an account that pays 5.6% simple interest? Round to the nearest year.

7. How much simple interest would $1,500 earn in 11 months at an interest rate of 3.75%?

8. How much simple interest would $1,000 earn in 275 days at an interest rate of 4.21 %? (There are 365 days in a year.)

9. Colin deposited $1,230 in an account that pays 3.19% simple interest for three years.

a. What will the interest be for the three years?

9. Colin deposited $1,230 in an account that pays 3.19% simple interest for three years.

b. What will be the new balance after three years?