Name ___________________________________________ Date ______________________
Simple Interest applications
Use the simple interest formula to solve each problem. Show your work!
1. Chanelle deposits $7,500 into the bank. She does not withdraw or deposit money for 6 years.
She earns 6% interest during that time.
a. How much interest will she have earned at the end of 6 years? ______________________
b. What will be the balance when she is able to withdraw her money? __________________
2. Craig just purchased a new car. He financed $45,000 and must pay it back over 5 years with
11% interest.
a. How much will Craig have paid in interest by the time his car is paid off? _____________
b. How much will he have paid for his car, including interest, after 5 years? ______________
3. Allison was left an inheritance from her Great Aunt on her 12th birthday. However, she is not
able to touch it until she is 21 years old. She inherited $50,000 that was put into an account
with 2% interest.
a. How much interest will Allison have earned when she turns 21 years old? ______________
b. How much money will be in the account on her 21st birthday? _____________________
©2011(2024)Beyond the Worksheet Inc. All rights reserved. [Link]
Simple Interest applications
4. Damian has a balance of $10,200 on his credit card. He threw the card away so he can
never use it again. He has 3½ years to pay off the balance. The interest rate on his card is
21%.
a. At the end of the 3½ years, how much interest has he paid? ________________________
b. When Damian pays off his credit card, how much will he have paid in all? ___________
5. Rosario was able to get a great interest rate on her house. She financed $150,000 for 15 years
with an interest rate of 2.75%.
a. How much will she pay in interest over 15 years? ____________________________
b. When she pays off her mortgage, how much will she have spent in all? _______________
6. Riley let his friend borrow $12,750. He wants to be paid back in 4¾ years and is going to
charge his friend a 5.5% interest rate.
a. How much money in interest will Riley earn? __________________________________
b. When Riley’s friend pays him back, how much money will he have received?
_____________________________
©2011(2024)Beyond the Worksheet Inc. All rights reserved. [Link]
Answer Key
Name ___________________________________________ Date ______________________
Simple Interest applications
Use the simple interest formula to solve each problem. Show your work!
1. Chanelle deposits $7,500 into the bank. She does not withdraw or deposit money for 6 years.
She earns 6% interest during that time.
$2,700
a. How much interest will she have earned at the end of 6 years? ______________________
$10,200
b. What will be the balance when she is able to withdraw her money? __________________
2. Craig just purchased a new car. He financed $45,000 and must pay it back over 5 years with
11% interest.
$24,750
a. How much will Craig have paid in interest by the time his car is paid off? _____________
$69,750
b. How much will he have paid for his car, including interest, after 5 years? ______________
3. Allison was left an inheritance from her Great Aunt on her 12th birthday. However, she is not
able to touch it until she is 21 years old. She inherited $50,000 that was put into an account
with 2% interest.
$9,000
a. How much interest will Allison have earned when she turns 21 years old? ______________
$59,000
b. How much money will be in the account on her 21st birthday? _____________________
©2011(2024)Beyond the Worksheet Inc. All rights reserved. [Link]
Simple Interest applications
4. Damian has a balance of $10,200 on his credit card. He threw the card away so he can
never use it again. He has 3½ years to pay off the balance. The interest rate on his card is
21%.
$7,497
a. At the end of the 3½ years, how much interest has he paid? ________________________
$17,697
b. When Damian pays off his credit card, how much will he have paid in all? ___________
5. Rosario was able to get a great interest rate on her house. She financed $150,000 for 15 years
with an interest rate of 2.75%.
$61,875
a. How much will she pay in interest over 15 years? ____________________________
$211,875
b. When she pays off her mortgage, how much will she have spent in all? _______________
6. Riley let his friend borrow $12,750. He wants to be paid back in 4¾ years and is going to
charge his friend a 5.5% interest rate.
$3,330.94
a. How much money in interest will Riley earn? __________________________________
b. When Riley’s friend pays him back, how much money will he have received?
$16,080.94
_____________________________
©2011(2024)Beyond the Worksheet Inc. All rights reserved. [Link]
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