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: 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? $1221.50 $918.00 $1045.00 $1021.50

Q 3: 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? $18,875.50 $16,875.74 $17,865.24 $15,354.45

Q 4: 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? $3375 $5375 $540 $375

Q 5: 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 $2081 $500 $2450

Q 6: 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? $1243.78 $1005.35 $1500.45 $1050.63

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