smc-4332-10-Find interest

Simple Interest, SMB-023

Jevin has a bank account that pays him simple interest.

The bank statement below shows the transactions on Jevin’s account for the month of July.

What amount, in dollars, did Jevin deposit in cash on 11 July? (1 mark)

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Interest for this account is calculated on the minimum monthly balance at a rate of 3.0% per annum.

Calculate the interest for July, correct to the nearest cent. (2 marks)

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`$620`
`$15.30`

Show Worked Solution

a.	`text(Deposit)`	`= 6870.67-6250.67`
		`= $620`

b. `text(Minimum Balance) = $6120.86`

`I`	`=Prn`
	`= 6120.86 xx 3/100 xx 1/12`
	`= 15.302…`
	`= $15.30`

Simple Interest, SMB-013

$2800 is invested in an account that earns simple interest at the rate of 4.0% per annum.

Calculate the total interest earned in the first six months. (2 marks)

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`$56`

Show Worked Solution

`P = 2800,\ \ r = 4.0text(%),\ \ n = \frac{6}{12}=0.5`

`I`	`= Prn`
	`= 2800 xx 4.0/100 xx 0.5`
	`= $56`

Simple Interest, SMB-012

$5000 is invested in an account that earns simple interest at the rate of 3.0% per annum.

Calculate the total interest earned in the first two years. (2 marks)

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`$300`

Show Worked Solution

`P = 5000,\ \ r = 3.0text(%),\ \ n = 2`

`I`	`= Prn`
	`= 5000 xx 3.0/100 xx 2`
	`= $300`

Simple Interest, SMB-011

Find an expression for the total value of an investment, in dollars, if $24 000 is invested for `x` months at a simple interest rate of 4.75% per annum? (2 marks)

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`$(24\ 000 + 95x)`

Show Worked Solution

`text(Interest)`	`= 24\ 000 xx x/12 xx 4.75/100`
	`= 95x`

`:.\ \text{Investment value}\ =$(24\ 000 + 95x)`

Simple Interest, SMB-010 MC

What is the interest earned, in dollars, if $4800 is invested for `x` months at a simple interest rate of 2.25% per annum?

`9x`
`10.8x`
`108x`
`900x`

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`A`

Show Worked Solution

`text(Interest)`	`= 4800 xx x/12 xx 2.25/100`
	`= 9x`

`=> A`

Simple Interest, SMB-007 MC

Jackie invests $4350 for 3 years. The simple interest is calculated at a rate of 4.5% per annum.

What is the total value of the investment at the end of this period, to the nearest dollar?

$4395
$4546
$4722
$4937

Show Answers Only

`D`

Show Worked Solution

`text(Interest)`	`=Prn`
	`=4350 xx \frac{4.5}{100} xx 3`
	`=$587.25`

`:.\ text(Value of Investment)=4350 + 587 =$4937`

`=> D`

Simple Interest, SMB-006 MC

Gutho invests $10 000 for 1 year and 8 months. The simple interest is calculated at a rate of 4.25% per annum.

What is the total value of the investment at the end of this period, to the nearest dollar?

$10 425
$10 571
$10 708
$14 562

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`C`

Show Worked Solution

`text{1 year 8 months = 12 + 8 = 20 months}`

`text(Interest)`	`=Prn`
	`=10\ 000 xx \frac{4.25}{100} xx \frac{20}{12}`
	`=$708`

`:.\ text(Value of Investment)=10\ 000+708=$10\ 708`

`=> C`

Simple Interest, SMB-005

Johnno lives overseas and needs $6000 for his planned trip to Parramatta Stadium to watch Junior Paolo play.

If he invests $5600 for 15 months at a simple interest rate of 6.5% per annum, determine if will get to see the big fella play. Show your working. (2 marks)

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`text(Interest)`	`=Prn`
	`=5600 xx \frac{6.5}{100} xx \frac{15}{12}`
	`=$455`

`text(Value of Investment)`	`=5600+455`
	`=$6055>$6000`

`:.\ \text{Johnno will get to see Junior play}.`

Show Worked Solution

`text(Interest)`	`=Prn`
	`=5600 xx \frac{6.5}{100} xx \frac{15}{12}`
	`=$455`

`text(Value of Investment)`	`=5600+455`
	`=$6055`

`:.\ \text{Johnno will get to see Junior play}.`

Simple Interest, SMB-004

Clancy estimates that he will need $7800 for his planned trip to visit the The Stockman's Hall of Fame in Longreach.

If he invests $7000 for 18 months at a simple interest rate of 6% per annum, will he reach his goal of $7800? Show your working. (2 marks)

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`A`

Show Worked Solution

`text(Interest)`	`=Prn`
	`=7000 xx \frac{6}{100} xx \frac{18}{12}`
	`=$630`

`text(Value of Investment)`	`=7000+630`
	`=$7630`

`:.\ \text{Clancy won’t reach his goal of $7800}.`

Simple Interest, SMB-003

Min Woo invests $8000 for 3 years. The simple interest is calculated at a rate of 4% per annum.

Calculate the total value of the investment at the end of this period. (2 marks)

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`$8960`

Show Worked Solution

`text(Interest)`	`=Prn`
	`=8000 xx \frac{4}{100} xx 3`
	`=$960`

`:.\ text(Value of Investment)`	`=8000+960`
	`=$8960`

Simple Interest, SMB-002 MC

$2500 is invested in an account that earns simple interest at the rate of 3.0% per annum.

The total interest earned in the first two years is

$55
$75
$150
$833

Show Answers Only

`C`

Show Worked Solution

`P = 2500,\ \ r = 3.0text(%),\ \ n = 2`

`I`	`= Prn`
	`= 2500 xx 3.0/100 xx 2`
	`= $150`

`=> C`

Simple Interest, SMB-001

$14 000 is invested in an account that earns simple interest at the rate of 2.5% per annum.

Calculate the total interest earned in the first three years. (2 marks)

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`$1050`

Show Worked Solution

`P = 14\ 000,\ \ r = 2.5text(%),\ \ n = 3`

`I`	`= Prn`
	`= 14\ 000 xx 2.5/100 xx 3`
	`= $1050`

Financial Maths, SMB-010 MC

$6000 is invested in an account that earns simple interest at the rate of 3.5% per annum.

The total interest earned in the first four years is

$70
$84
$210
$840

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`D`

Show Worked Solution

`P = 6000,\ \ r = 3.5text(%),\ \ n = 4`

`I`	`= Prn`
	`= 6000 xx 3.5/100 xx 4`
	`= 840`

`=> D`

Financial Maths, SMB-009

Pamela deposits $2000 into a savings account which earns simple interest at the rate of 2.5% per annum.

No deposits or withdrawals are made from this account.

After 2 years, how much is in Pamela's savings account? (2 marks)

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`$2100`

Show Worked Solution

`text(Interest earned)`	`= Prn`
	`= 2000 xx 2.5/100 xx 2`
	`= $100`

`:.\ text{Account balance}`	`= 2000 + 100`
	`= $2100`

Financial Maths, SMB-006

Cassie opens a savings account and deposits $900 into it.

She makes no more deposits and earns simple interest on her original deposit at 3.5% each year.

How much interest will Cassie earn after 4 years? (2 marks)

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`$126`

Show Worked Solution

`text(Interest earned)`	`=Prn`
	`= 900 xx 3.5/100 xx 4`
	`= $126`

Financial Maths, STD2 F1 2019 HSC 9 MC

What is the interest earned, in dollars, if $800 is invested for `x` months at a simple interest rate of 3% per annum?

`2x`
`24x`
`200x`
`2400x`

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`A`

Show Worked Solution

♦♦♦ Mean mark 20%!

`text(Interest)`	`= 800 xx x/12 xx 3/100`
	`= 2x`

`=> A`

Financial Maths, STD2 F1 2010 HSC 5 MC

Minjy invests $2000 for 1 year and 5 months. The simple interest is calculated at a rate of 6% per annum.

What is the total value of the investment at the end of this period?

$2170
$2180
$3003
$3700

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`A`

Show Worked Solution

`text(Interest)`	`=Prn`
	`=2000 xx\ text(6%)\ xx 17/12`
	`=$170`

`:.\ text(Value of Investment)`	`=2000+170`
	`=$2170`

`=> A`

Financial Maths, STD2 F1 2013 HSC 9 MC

Lynne invests $1000 for a term of 15 months. Simple interest is paid on the investment at a rate of 3.75% per annum.

How much will Lynne's investment be worth at the end of the term?

$1046.88
$1047.09
$1296.88
$1468.75

Show Answers Only

`A`

Show Worked Solution

`I=Prn=1000xx3.75/100xx15/12=$46.88`

`:.\ text(Investment worth)\ = 1000+46.88=$1046.88`

`=>\ A`