Name:__________________________________________
Activity
1. You deposit 1,000 into a bank account paying 7% simple
interest per year. You left the money in for 3 years. Find the
interest earned and the amount at the end of those 3 years?
2. You deposit 12,000 into a bank account paying 1.5% simple
interest per month. You left the money in for 210 days. Find
the interest earned and the amount.
3. You deposit some money into a bank account
paying 4% simple interest per year. You received 72 in
interest after 3 years. How much the deposit (principal) was?
4. You deposit some money into a bank account
paying 2% simple interest per 6 months. You received 15 in
interest after 9 month. How much the principal was?
5. You deposit 1,000 into a bank account and
received 50 simple interest after 3 months. What had been the
interest rate?
6. You deposit 350 into a bank account paying 1.2% simple
interest per month. If you receiver 9 as interest, find the time
for which the money stayed at the bank.
7. A business takes out a simple interest loan of 10,000 at a rate
of 7.5%. What is the total amount the business will repay if
the loan is for 8 years?
8. If you deposit 4,000 into an account paying 6% annual
interest compounded quarterly, how much money will be in
the account after 5 years?
Name:__________________________________________
Activity
1. You deposit 1,000 into a bank account paying 7% simple
interest per year. You left the money in for 3 years. Find the
interest earned and the amount at the end of those 3 years?
2. You deposit 12,000 into a bank account paying 1.5% simple
interest per month. You left the money in for 210 days. Find
the interest earned and the amount.
3. You deposit some money into a bank account
paying 4% simple interest per year. You received 72 in
interest after 3 years. How much the deposit (principal) was?
4. You deposit some money into a bank account
paying 2% simple interest per 6 months. You received 15 in
interest after 9 month. How much the principal was?
5. You deposit 1,000 into a bank account and
received 50 simple interest after 3 months. What had been the
interest rate?
6. You deposit 350 into a bank account paying 1.2% simple
interest per month. If you receiver 9 as interest, find the time
for which the money stayed at the bank.
7. A business takes out a simple interest loan of 10,000 at a rate
of 7.5%. What is the total amount the business will repay if
the loan is for 8 years?
8. If you deposit 4,000 into an account paying 6% annual
interest compounded quarterly, how much money will be in
the account after 5 years?
9. A principal of 2,000 is placed in a savings account at 3% per
annum compounded annually. How much is in the account
after one year, two years and three years?
10. If Miles West invests 5,000 in a financial institution at 6%
per annum compounded quarterly for a period of three years,
calculate his interest at the end of three years using the
compound interest formula.
11. Calculate the present value of each cashflow using a discount
rate of 7%. Which do you most prefer most? Show and
explain all supporting calculations.
 Cashflow A: receive 60 today and then receive $60 in four
years.
 Cashflow B: receive 12 every year, forever, starting today.
 Cashflow C: pay 50 every year for five years, with the first
payment being next year, and then subsequently receive 30
every year for 20 years.
 Cashflow D: receive 9 every other year, forever, with the first
payment being next year.
9. A principal of 2,000 is placed in a savings account at 3% per
annum compounded annually. How much is in the account
after one year, two years and three years?
10. If Miles West invests 5,000 in a financial institution at 6%
per annum compounded quarterly for a period of three years,
calculate his interest at the end of three years using the
compound interest formula.
11. Calculate the present value of each cashflow using a discount
rate of 7%. Which do you most prefer most? Show and
explain all supporting calculations.
 Cashflow A: receive 60 today and then receive $60 in four
years.
 Cashflow B: receive 12 every year, forever, starting today.
 Cashflow C: pay 50 every year for five years, with the first
payment being next year, and then subsequently receive 30
every year for 20 years.
 Cashflow D: receive 9 every other year, forever, with the first
payment being next year.