Basic Mathematics for College Students

   

11. Complete the table by finding the simple interest
    earned.

6.5 Interest 567

18. If $6,000 is invested for 1 year at a rate of 7%,
    how much simple interest is earned?


19. If $700 is invested for 4 years at a rate of 9%,
    how much simple interest is earned?


20. If $800 is invested for 5 years at a rate of 8%,
    how much simple interest is earned?
    Calculate the total amount in each account.See Example 2.


21. If $500 is invested at 2.5% simple interest for
    2 years, what will be the total amount of money
    in the investment account at the end of the
    2 years?


22. If $400 is invested at 6.5% simple interest for
    6 years, what will be the total amount of money
    in the investment account at the end of the
    6 years?


23. If $1,500 is invested at 1.2% simple interest for
    5 years, what will be the total amount of money
    in the investment account at the end of the
    5 years?


24. If $2,500 is invested at 4.5% simple interest for
    8 years, what will be the total amount of money
    in the investment account at the end of the
    8 years?
    Calculate the simple interest.See Example 3.


25. Find the simple interest on a loan of $550 borrowed
    at 4% for 9 months.


26. Find the simple interest on a loan of $460 borrowed
    at 9% for 9 months.


27. Find the simple interest on a loan of $1,320 borrowed
    at 7% for 4 months.


28. Find the simple interest on a loan of $1,250 borrowed
    at 10% for 3 months.
    Calculate the total amount that must be repaid at the end of
    each short-term loan.See Example 4.


29. $12,600 is loaned at a
    simple interest rate of 18%
    for 90 days. Find the total
    amount that must be repaid
    at the end of the 90-day
    period.


30. $45,000 is loaned at a
    simple interest rate of 12%
    for 90 days. Find the total
    amount that must be repaid
    at the end of the 90-day period.


31. $40,000 is loaned at 10% simple interest for 45 days.
    Find the total amount that must be repaid at the end
    of the 45-day period.


32. $30,000 is loaned at 20% simple interest for 60 days.
    Find the total amount that must be repaid at the end
    of the 60-day period.

Principal Rate Time Interest earned

$10,000 6% 3 years

12. Determine how many times a year the interest on a
    savings account is calculated if the interest is
    compounded
    a. annually b. semiannually
    c. quarterly d. daily
    e. monthly


13. a. What concept studied in this section is illustrated
    by the diagram below?
    b. What was the original principal?
    c. How many times was the interest found?
    d. How much interest was earned on the first
    compounding?
    e. For how long was the money invested?
    1st qtr 2nd qtr 3rd qtr 4th qtr
    $1,000 $1,050 $1,102.50 $1,157.63 $1,215.51


14. $3,000 is deposited in a savings account that earns
    10% interest compounded annually. Complete the
    series of calculations in the illustration below to find
    how much money will be in the account at the end of
    2 years.

NOTATION

15. Write the simple interest formula without
    the multiplication raised dots.


16. In the formula , how many

operations must be performed to find A?

GUIDED PRACTICE

Calculate the simple interest earned.See Example 1.

17. If $2,000 is invested for 1 year at a rate of 5%,
    how much simple interest is earned?

APa 1 

r

n

b

nt

IPrt

Original principal

$3,000

New principal

Ending balance

First year’s interest

Second year’s interest

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