GMF-10 Simple & Compound Interest Review 1

Name ________________ ________________ Period ___ Date _________

Show your work for each of the following questions.

1. Use the simple interest formula (I = Prt) to find the indicated variable.

a) Jon invests $4500 at 3.8%/a and earns $855 in interest. For how many months
did he invest the money?

b) Sam borrows $12 000 at 8¾%/a for 18 months. How much interest does he pay?

c) Kevin borrows $15 000 for 36 months and pays $8280 in interest. What was the
interest rate?

d) Joanne invests money at 2%/a for 90 days and earns $39.45 in interest. How
much money did she invest?

e) For how many days does one borrow $7200 at 24½%/a if one is charged
$2870.14 in interest?

2. Complete the chart. You do not have to calculate the amount of the loan or
investment.

P r N i n
a) $6000 invested at 7%/a
compounded semi-annually
for 6 years
b) $16 000 invested at 2.7%/a
compounded annually for 8 years
c) $7600 borrowed at 30%/a
compounded monthly for 36 months
d) $13 000 borrowed at 28%/a
compounded quarterly for 18 months
GMF-10 Simple & Compound Interest Review 2

3. Calculate the amount of the loan or investment and the interest charged or
earned for each of the following.
A = P(1 + i)n I=A-P

a) $45 000 is borrowed at 24%/a for 6 years compounded monthly

b) $9000 is invested at 3.1%/a for 48 months compounded annually

c) $7500 is borrowed at 12.8%/a for 36 months compounded semi-annually

d) $15 000 is invested at 9%/a for 12 years compounded quarterly

4. How many years does it take each of the following investments to double?

a) $8000 invested at 9.5%/a compounded quarterly

b) $25 0000 invested at 4.8%/a compounded monthly

c) $5500 invested at 12%/a compounded annually

d) $17 000 invested at 3.2%/a compounded semi-annually