# Simple Interest Word Problems

### Solutions

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?

## 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

## 3

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

I = P

## 4

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

I = 3 · P

## 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%.