Simple Interest Word Problem

Bob went to buy a used motorcycle for $5,750. The bank gave him a loan for 2.7% interest for 4 years. How much will he pay in interest for this loan?

• $1261

• $350

• $621

• $6,371

Which formula do you use for simple interest questions?

• V = L x W x H

• I = prt

• y = mx + b

• y = kx

Mario bought a new Dodge Charger for $18,400. He took out a loan for 6 years for 12% interest. How much interest will Mario pay for this loan?

• $11,000

• $813

• $13

• $13,248

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

• $150

• $192

• $1350

• $1392

Alan opened a savings account with $2,250. His account will earn 7.2% simple interest. How much total money will be in his account after 5 years?

• $3,060.00

• $810.00

• $2,250.00

• $4,400.00

Alexis opened an account with $35. The account she opened earns simple interest at a rate of 8.6%. How much money will her account have in 4 years? (total)

• $47.04

• $35.04

• $45.00

• $37.45

Emily’s parents put $1500 in her bank account for college tuition at a simple interest rate of 8.25%. What will be the balance after 18 years?

• $22,275

• $2227.50

• $12,375

• $3727.50

Mark took out a loan for $25,690 to purchase a new truck at a simple interest rate of 5.2%. How much interest will he pay on his truck after 5 years?

• $6,679.40

• $32,369.40

• $66,794

• $679.40

Kennedy won $3,000 from a radio contest. If she puts this money in a bank account that earns 2.9% simple interest, how much will she have in total in her account at the end of 10 years?

• $8700

• $38,700

• $870

• $3,870

Maria borrowed $3,000 at a simple interest rate of 4% per year.  How much did she have to total after 4 years?

• $480

• $3,480

• $4,800

• $7,800