Simple intrest

Question 1

James invests £200 for 1 year in a bank account.
The account pays simple interest at a rate of 3% per year.

Work out the total amount of money in the account at the end of the year.

Answer 1

0.03 x 200 = 6
200 + 6 = 206

Question 2

Sami invested £400 for 2 years at 5% per year simple interest.

Work out the total interest Sami gets.

Answer 2

0.05 x £400 = £20
20 x 2 = £40

Question 3

Carolyn invested £700 for 3 years at 2% per annum simple interest.

Work out the total amount of interest Carolyn earned.

Answer 3

0.02 x £700 = £14
£14 x 3 = £42

Question 4

£2700 is invested for 2 years at 5% per year simple interest.

Work out the total interest.
0.05

Answer 4

0.05 x £2700 = £135
£135 x 2 =£270

Question 5

Faith invests £800 for 3 years in a bank account.
The account pays simple interest at a rate of 0.4% per year

Work out the total amount of interest Faith has got at the end of the 3 years.

Answer 5

0.004 x £800 = £3.20
£3.20 x 3 = £9.60
£800 + £9.60 = £809.60

Question 6

Nina invested £1500 for 4 years at 2.5% per annum simple interest.

Work out the total amount of money in the account at the end of 4 years.

Answer 6

0.025 x £1500 = £37.50
£37.50 x 4 = £150.00
£1500 + £150 = £1,650