Grade 6 - Mathematics 8.13 Simple Interest Word Problems

Directions: Answer the following qustions. Also write at least five examples of your own.

Q 1: Bob borrowed $5,000 from a bank at the rate of 18% per year. He lent $3,000 to a friend at the rate of 24% per year and $2,000 to another friend at the rate of 36% per year. How much profit would he earn in 2 years? $2450 $500 $2081 $1080

Q 2: John deposited $15,000 in a savings account that paid an interest of 12% per annum. The interest is calculated every 6 months and added to the principal. How much does he get after 1 and 1/2 years? $17,865.24 $16,875.74 $15,354.45 $18,875.50

Q 3: Karen deposited an amount of $5,000 as a certificate of deposit (CD) in a bank for a period of 3 years. The CD pays a simple interest of 15% per year and pays interest every 6 months. How much interest does she get every 6 months? $540 $375 $3375 $5375

Q 4: A store owner borrowed an amount of $3,500 on 6th June, 1991 at the rate of 24% per annum and repaid it on 15th January, 1992. What is the amount he repaid? $4013.21 $3780.35 $4103.35 $5403.42

Q 5: Jason deposited $1,000 in a bank account that gave an interest of 5% per annum. Interest is calculated every 6 months and added to the principal. Interest for next 6 months is calculated on the total amount. How much does he get after 1 year? $1005.35 $1050.63 $1243.78 $1500.45

Q 6: An employee borrowed $900 form a money lender at the rate of 18% per annum and repaid it after 9 months. How much did he repay? $918.00 $1221.50 $1045.00 $1021.50

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