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Year 10 Simple and Compound Interest Worksheet — Level 3 — Answers

Answer sheet with worked solutions for the Year 10 financial mathematics worksheet.

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Success TutoringWorksheetsAnswer sheetYear 10 · Mathematics · Financial Mathematics

Year 10 Simple and Compound Interest Worksheet — Level 3 — Answers

Show your working. Write the rate as a decimal (5% = 0.05). Round money to the nearest cent.

1.Compare $2,000.00 invested for 5 years at 8% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $138.66

  1. Simple: I = $2,000.00 × 0.08 × 5 = $800.00
  2. Compound: A = $2,000.00 × 1.085 ≈ $2,938.66, so interest ≈ $938.66
  3. Difference = $938.66 − $800.00 = $138.66
2.$5,750.00 is invested at 4.5% per year, compounded yearly, for 9 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $8,545.05; interest $2,795.05

  1. A = P(1 + r)n = $5,750.00 × (1 + 0.045)9
  2. = $5,750.00 × 1.486095
  3. ≈ $8,545.05
  4. Interest = $8,545.05 − $5,750.00 = $2,795.05
3.$7,250.00 is invested at 2.5% per year, compounded yearly, for 5 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $8,202.71; interest $952.71

  1. A = P(1 + r)n = $7,250.00 × (1 + 0.025)5
  2. = $7,250.00 × 1.131408
  3. ≈ $8,202.71
  4. Interest = $8,202.71 − $7,250.00 = $952.71
4.$10,000.00 is invested at 3% per year, compounded yearly, for 4 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $11,255.09; interest $1,255.09

  1. A = P(1 + r)n = $10,000.00 × (1 + 0.03)4
  2. = $10,000.00 × 1.125509
  3. ≈ $11,255.09
  4. Interest = $11,255.09 − $10,000.00 = $1,255.09
5.$7,000.00 is invested at 5% per year, compounded yearly, for 10 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $11,402.26; interest $4,402.26

  1. A = P(1 + r)n = $7,000.00 × (1 + 0.05)10
  2. = $7,000.00 × 1.628895
  3. ≈ $11,402.26
  4. Interest = $11,402.26 − $7,000.00 = $4,402.26
6.$2,250.00 is invested at 4.5% per year, compounded yearly, for 7 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $3,061.94; interest $811.94

  1. A = P(1 + r)n = $2,250.00 × (1 + 0.045)7
  2. = $2,250.00 × 1.360862
  3. ≈ $3,061.94
  4. Interest = $3,061.94 − $2,250.00 = $811.94
7.$2,000.00 is invested at 3% per year, compounded yearly, for 7 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $2,459.75; interest $459.75

  1. A = P(1 + r)n = $2,000.00 × (1 + 0.03)7
  2. = $2,000.00 × 1.229874
  3. ≈ $2,459.75
  4. Interest = $2,459.75 − $2,000.00 = $459.75
8.$13,250.00 is invested at 4.5% per year, compounded yearly, for 2 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $14,469.33; interest $1,219.33

  1. A = P(1 + r)n = $13,250.00 × (1 + 0.045)2
  2. = $13,250.00 × 1.092025
  3. ≈ $14,469.33
  4. Interest = $14,469.33 − $13,250.00 = $1,219.33
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