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: Paul had a credit card balance of $10,000 which carried a finance charge of 24% per annum. After 2 years, he won $18,000 in a lottery and paid off the credit card balance. After paying off the debt, how much money did he have? $5,000 $4,600 $8,000 $3,200

Q 2: 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 $5403.42 $4103.35

Q 3: 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? $1080 $2450 $2081 $500

Q 4: Principal = $1,500, Rate = 36%, and Time = 26-2-1991 to 8-7-1991, find the total amount. $1635.50 $1695.29 $1690.76 $1650.32

Q 5: 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 $1021.50 $1045.00

Q 6: 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? $375 $3375 $5375 $540

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