Simple Interest Word Problems

1How long does it take a principal of $25,000 at a simple interest rate of 5% to become $30,000?

2$45,000 is deposited into a savings account. After one year, 4 months and 20 days it totals $52,500. Calculate the simple interest rate for this account.

3Determine the simple interest rate applied to a principal over 20 years if the total interest paid equals the borrowed principal.

4How long does it take a principal payment to triple at a simple interst rate of 6%?

5 Find the total amount of simple interest that is paid over a perod of five years on a principal of $ 30,000 at a simple interest rate of 6%.

6 Calculate the total worth of an investment after six months with a principal of $10,000 at a simple interest rate of 3.5%.


1

How long does it take a principal of $25,000 at a simple interest rate of 5% to become $30,000?

Solution

Solution


2

$45,000 is deposited into a savings account. After one year, 4 months and 20 days it totals $52,500. Calculate the simple interest rate for this account.

360 + 120 + 20 = 500 days

I = 52 500 − 45 000 = $7,500

Solution

Solution


3

Determine the simple interest rate applied to a principal over 20 years if the total interest paid equals the borrowed principal.

I = P

Solution

Solution


4

How long does it take a principal payment to triple at a simple interst rate of 6%?

I = 3 · P

Solution

Solution


5

Find the total amount of simple interest that is paid over a perod of five years on a principal of $ 30,000 at a simple interest rate of 6%.

Solution


6

Calculate the total worth of an investment after six months with a principal of $10,000 at a simple interest rate of 3.5%.

Solution

Solution




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