Simple and Compound Interest Review

1. The yearly interest payable on a deposit of $250 at 5.5% p.a. simple interest is.

2. The interest on $12 167 invested for 5 years at 2.5% simple interest p.a. would be.

3. Sarah received $75 interest on her term deposit of $450 over 3 years. The simple interest
rate per annum is.

4. Tom earned $504 when he invested $16 820 for 8 months. His rate of simple interest is.

5. John invested a sum of money, which earned $750 simple interest at the rate of 6% per
annum over 2 years. The amount invested was.

6. Cathy invested $8200 at the rate of 4.5% p.a. It earned $738 simple interest. The period
of investment was.

7. An investment of $10 000 to be invested for a period of 5 years and compounded quarterly at
3.75% p.a. will have a future value of.

8. An amount of $12 000 is invested for a period of 9 years at 3% p.a. compounded monthly.

9. Two banks pay simple interest on short-term deposits. Bank A pays 5% p.a. over 3 years,
and Bank B pays 5.5% p.a. for 2 years. The difference between the two banks’ final
payout figure, if $10 000 was invested in each account is:

10. An investment of $6000 was placed for 3 years at 4.25% p.a. compounded annually. How
much more would be collected if the investment was compounded quarterly?