Percent Applications: Simple Interest

Victoria borrowed $500 for college textbooks. The interest rate was 6%. She plans to pay back her loan in 6 months. How much will she pay total?

Austin loaned his brother $20 and asked him to pay him back in 3 months. He's going to charge him 4% interest. Ausin is excited about all the money he will make in interest. How much will he really make in interest?

Rachel borrowed $100. The interest rate for her loan is 8%. What is the difference in the interest she'll pay if she pays it back in 2 years verses 3 years?

Dave puts $2000 in a certificate of deposit (CD) account that earns 4% in simple interest. If He leaves the money in there for 3 years, how much will he earn in interest?

How much interest would you pay on a 2-year loan for $300 that has an interest rate of 7%?

Calculate the total amount:

Principal: $630

Interest Rate: 5.5%

Time: 6 months

• $647.33

• $17.33

• $172.25

• $803.25

You are planning to take out a 6-year loan with an interest rate of 1.5%. If x is the amount of the loan, write an expression that represents the simple interest accrued.

• I = x(1.5)(6)

• I = x(0.015)(6)

• I = x(1.5 + 6)

• I = 1.5x + 6x

You plan to open a certificate of deposit (CD) that earns 0.6% interest. You also plan to leave the money in the CD for 10 years. If x is the principle amount for the loan, which expression can be used to show the amount of interest earned over 10 years?

• I = x(0.6)(10)
  

• I = x(0.006)(10)
  

• I = x(0.06)(10)
  

• I = x + x(0.006)(10)
  

What would be the total amount owed for a $3,275 loan with a 4.5% interest rate after 4 years?

Calculate the interest:

Principal: $2,800

Interest Rate: 3.5%

Time: 9 months