MYP3: Revision on SI and CI

SI
1. If you borrow $225 for eight years at an interest rate of 6%, how much interest will
you pay?
2. If the balance at the end of eight years on an investment of $630 that has been
invested at a rate of 9% is $1,083.60, how much was the interest?
3. Jack deposited $1400 in his bank account. After 3 years, the account is worth $1,694.
Find the simple interest rate the account earned.
4. $ 4000 were lent each to Ron and Rob at 15% per annum for 3¹/₂ years and 5 years
respectively. Find the difference in the interest paid by them.
5. In what time will Rs.26500 amount to Rs.32065 at the rate of 9% per annum?

CI
1. I want to buy a house costing £175,000. Halifax bank has agreed to give me a mortgage at an
interest rate of 3.5% over 30 years. Santander has offered a mortgage of 4.19% over 25
years. Finally, Lloyds TSB have offered me a first time buyer’s mortgage to be paid over 35
years at an interest rate of 3.14%. Which mortgage deal is the best? (show method)
2. If, at the end of two years, a savings account has a balance of Rs. 1172.60, and the interest
rate is compounded monthly at 3.2%, then what is the original amount deposited two years
ago?
3. An initial deposit of $5000 is made into a savings account that compounds 7.1%interst
annually. How much is in the account at the end of five years?
4. £6800 is deposited in a bank paying 11.5% compound interest per annum.
What is the balance after 6 years?