Section PF.7 – Practice Problems

Note: If your final answer is a dollar amount then it should be rounded to the nearest cent.

1. Johnathon has savings of $4,300.00, which earned 9[latex]\frac{3}{4}[/latex]% simple interest for 5 years. Find the interest.

2. Sally borrowed $600.00 for 90 days at 4.65%. Find the amount of simple interest owed.

3. Janelle invests $18,000.00 at 8% simple interest for 41 years. How much is in the account at the end of the 41-year period?

4. Carlos invests $15,000.00 at 2[latex]\frac{1}{4}[/latex]% simple interest for 29 years. How much is in the account at the end of the 29-year period?

5. Kristina invests $13,000.00 at 7% simple interest for 3 months. How much is in the account at the end of the 3-month period? How much interest was earned?

6. How much would you need to deposit in an account now in order to have $3,000.00 in the account in 5 years? Assume the account earns 2% simple interest.

7. How much would you need to deposit in an account now in order to have $1,500.00 in the account in 9 months? Assume the account earns 10.46% simple interest.

8. How much would you need to deposit in an account now in order to have $2,000.00 in the account in 15 years? Assume the account earns 6% simple interest.

9. What simple interest rate would you need on an account in order to have a deposit of $1,000.00 grow to $1,500 in 2 years?

10. What simple interest rate would you need on an account in order to have a deposit of $2,000 grow to $2,500.00 in 5 months?

11. What simple interest rate would you need on an account in order to have a deposit of $4,000 grow to $7,000.00 in 10 years?

12. You invest $500.00 in a savings account that pays 5.5% simple interest. How long will it take for this investment to grow to $600.00 in value? Round your answer to the nearest tenth of a year.

13. You invest $200.00 in a savings account that pays 8[latex]\frac{3}{8}[/latex]% simple interest. How long will it take for this investment to grow to $900.00 in value? Round your answer to the nearest tenth of a year.

14. You invest $4000.00 in a savings account that pays 7% simple interest. How long will it take for this investment to grow to $7,000.00 in value? Round your answer to the nearest tenth of a year.

15. You invest $9600.00 in a savings account that pays 3.6% simple interest. How long will it take for this investment to double in value? Round your answer to the nearest tenth of a year.

16. Jenelle wants to invest $500.00 in a savings account that pays 4.3% simple interest. How long will it take for this investment to triple in value? Round your answer to the nearest tenth of a year.

17. Brian invests $1200.00 in a savings account that pays 5.1% simple interest. How long will it take for this investment to double in value? Round your answer to the nearest tenth of a year.

18. Cristina takes her car to a title loan business to borrow some money. She is given $1,000.00. She must pay back the $1,000.00 in addition to a $200.00 fee in 6 months. What simple interest rate is she being charged?

19. Carlos takes his textbook to a pawnshop to borrow some money. He is given $40.00. He must pay back the $40.00 in addition to a $20.00 fee in 3 months. What simple interest rate is he being charged?

20. Marie takes her television to a pawnshop to borrow some money. She is given $200.00. She must pay back the $200.00 in addition to a $75.00 fee in 100 days. What simple interest rate is she being charged?