1.

Find the simple interest and amount in each of the following:

(a) P = $1800       R = 5%        N = 1 year = $90

(b) P = $2600       R = 12%       N = 3 years = $936

(c) P = $3125       R = 15%       N = 73 days = $93.75

Word problems on simple interest worksheet:

2. What sum would yield an interest of $36 in 3 years at 3% p.a.?

36 = P times 0.03 times 3

36 = P times 0.09

P = 36/0.09 = $400

3. At what rate per cent per annum will $250 amount to $330 in 4 years?

330 – 250 = 80

80 = 250 times 4 times R

80 = 1000 times R

R = 80/1000

R = 8%

4. At what rate per cent per annum will $400 yield an interest of $78 in 1¹/₂
years?

78 = 400 times 1½ times R

78 = 400 times 3/2 times R

78 = 600 times R

R = 78/600

R = 0.13

R = 13%
5. In what time will $400 amount to $512 if the simple interest is the
calculated at 14% p.a.?

112 = 400 times 14% times R

112 = 400 times 0.14 times R

112 = 56 times R

R = 112/56

R = 2 years.

6. A sum amount to $2400 at 15% simple interest per annum after 4 years.
Find the sum.

I = 2400 times 0.15 times 4

I = $1440

The sum is $1440.

7. Ken borrowed $2000 from Sam at 8% per annum. After 6 year he cleared
the amount by giving $2600 cash and a watch. Find the cost of the watch.

2600 – 2000 = 600

600 + x = 2000 times 0.08 times 6

600 + x = 960

x = 360

The cost of the watch is $360.

8. In how many years will $400 yield an interest of $112 at 14% simple
interest?

112 = 400 times 0.14 times N

112 = 56 times N

N = 112/56

N=2

It will take 2 years.

9. In how many years will $12000 yield an interest of $13230 at 10% simple
interest?

13230 = 12000 times 0.10 times N

13230 = 1200 times N

N = 13230/1200

N = 11.025 years

10. In how many years will $600 double itself at 10% simple interest?

1200 = 600 times 0.10 times N

1200 = 60 times N

N = 1200/60

N = 20

It will take 20 years for $600 to double itself at 10% simple interest.

11. At what rate of simple interest will $5000 amount to $6050 in 3 years, 4
months?

= 6.3% per month.

12. At what rate of simple interest will the sum of money double itself in 6
years?

Sum of money = x

Time = 6 years

Money after 6 years = 2x

= Simple interest times 100 / principal times T

= x times 100 / x times 6

= 100 / 6

= 50 / 3

= 16.66 (2dp)
13. Find the simple interest at the rate of 5% p.a. for 3 years on that
principal which in 4 years, 8 months at the rate of 5% p.a. gives $1200 as
simple interest.

I = PRN

I = 1400

N = 4 years, 8 months

= 4 + (8/12)

= 4 + (2/3)

= (14/3)

R = 5%

P = (I times 100) / (R times N)

P = (1400 times 100) / (5 times 14/3)

P = (1400 times 100 times 3) / (5 times 14)

P = 100 times 20 times 3

P = 6000

R = 5%

N = 3 years

I = (P times R times T) / 100

I = (6000 times 5 times 3) / 100

I = 60 times 5 times 3

I = 900