Videos: Simple Interest
What is Simple Interest?
- You deposit $1000 into a bank account that pays 10% simple. How much interest would you earn if:
(a) You left the money in for 2 years?
(b) You left the money in for 6 months?
(c) You left the money in for 9 months?
(d) Your deposit was March 3 and you withdrew the money November 7 the same year?
(e) Your deposit was on April 6 and you withdrew the money on Dec. 23 the same year?
(f) You made a deposit November 12, 2012, and withdrew the money March 15, 2013?
(g) You made a deposit October 28, 2012 and withdrew the money September 21, 2013?
- On December 1, your one year term deposit comes due and you collect the principal and $120 in interest. The term deposit paid 6% simple interest. How much money did you deposit?
- 18 months ago you purchased a bond that paid 7.5% simple interest. You cashed in the bond and received the principal plus $337.50 in interest. Find the principal.
- On May 31 you decided it was time to start a new life in the palm trees. You emptied out your bank account. You received your principal of $1750 and interest of $437.50. How long had your money been in the bank if the account paid interest at 5% simple?
- On your 65th birthday you eagerly cash in one of your RRSP’s. You receive a total of $4295. Your original investment was $3000 and the RRSP paid interest at 7% simple. How many months was your money in the RRSP?
- How long will it take you to double your money at 8% simple?
- On March 6th you deposit $3000 into a bank account. You withdraw the principal and interest totaling $3123.29 on December 31. What interest rate was paid?
- On December 16, 2011 you withdraw your entire Christmas fund of $2098.63 from your account. You deposited $2000 on February 19 of 2011 (not a leap year). What simple interest rate was paid?
- You have decided to start a new car fund. You deposit $6000 into an account paying 10% simple interest. How much money will you have in 50 months?
- On December 31 you repaid a loan to the Hammerhead Finance and Loan Company. You repaid $6000 which was principal and interest on a five year loan at 10% simple. How much money did you borrow?