12 Chapter 1 Simple Interest
- Larissa has opened a CD at Canandaigua Federal Bank by depositing $27,392.04. The term of the CD is 4 years, and it
pays 5.44% simple interest. How much will she have in this account at the end of the term? - The Village of West Rochester made a short-term deposit of $476,903 in a local bank. When the village withdrew its
funds, the account had grown to $479,147. How much interest did it earn on the deposit? - Express 9^12 ⁄ 25 % as a decimal.
- If you invested $1,825 at 5^7 ⁄ 8 % simple interest, how much would your money have grown to after 2 years?
- Find the amount of interest that would be paid on a $5,255.52 deposit at 5.25% simple interest for 1 year.
- Levar’s Landscaping borrowed $79,500 to fi nance the purchase of new equipment. The simple interest rate was 8^3 ⁄ 8 %,
and the term of the loan was 1 year. Calculate the total interest that the business will pay for this loan. - Martina deposited $4,257.09 in a certifi cate of deposit. Two years later, the value of her account had grown to
$4,503.27. How much interest did she earn? - Find the total amount that will be required to pay off a 3-year loan of $14,043.43 at 6.09% simple interest.
- Express the following rates as decimals: (a) 4.37%, (b) 12.5%, and (c) 300%.
H. Additional Exercises
- Sheldon paid $4,255 to settle a debt. The total interest he paid was $375. How much did he borrow originally?
- Each of the following decimals represents an interest rate. Rewrite the rate as a percent.
a. 0.03 e. 0.387b. 0.0475 f. 0.008c. 0.125 g. .06569d. 1.5 h. .0025- a. Tom deposited $5,000 in a 2-year certifi cate of deposit paying 8% simple interest. What was the value of his account
at the end of the 2 years?
b. Jerry deposited $5,000 in a 1-year certifi cate deposit paying 8% simple interest. At the end of the fi rst year, he took
his money and opened up a new 1-year certifi cate of deposit, also paying 8% simple interest. How much was Jerry’s
account worth at the end of the 2 years?