1. Grandpa Jack wants to help pay for college for his grandson, Little Jack.

Little Jack is currently 8

years old. Grandpa Jack makes a one-time deposit into an account that earns simple interest
every year. Grandpa Jack invests 10,000 now and in ten years, that will grow to 15,000. What
rate of simple interest did Grandpa Jack receive?

2. What rate does Johnny need if he would like to yield 10,000 in interest from a principal
of 25,000 in 5 years?

3. John has 100,000 to invest for 5 years for 8% return. How much simple interest will his
investment yield?

4. How many years would it take Marissa to make 20,000 in interest using a simple interest
investment of 200,000 in principal at 5% return?

5. We deposit today 175,000 in an account paying 6% simple interest every 6 months. Assuming
we make no other deposits, how much interests will we receive after 7.5 years?

6. Scott wants to invest 1,000 for 1 year. At Bank A, his investment will collect 3% interest
compounded daily while at Bank B, his investment will collect 3.50% interest compounded
monthly. Which bank offers a better return? How much more will he receive by choosing that
bank over the other?

7. Barry invests 9,000 in corporate bonds at 8% annual interest, compounded quarterly. At the
end of the year, how much interest has his investment earned?

8. Jessica deposits 5,000 in a savings account at 6% interest. The interest is compounded

monthly. How much will she have in her savings account after 5 years?

9. If you invest 10,000 today into a fund which earns a 10% annually compounded interest, what
amount of money will you have in the fund 3 years from now?

10. 45,000 is deposited in an account paying 6% compounded annual interest rate, how much
will there be on the account after two years?