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Year 10 Simple and Compound Interest Worksheet — Level 3 — Practice Set 2 — 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 — Practice Set 2 — Answers

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

1.$11,250.00 is invested at 6% per year, compounded yearly, for 5 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $15,055.04; interest $3,805.04

  1. A = P(1 + r)n = $11,250.00 × (1 + 0.06)5
  2. = $11,250.00 × 1.338226
  3. ≈ $15,055.04
  4. Interest = $15,055.04 − $11,250.00 = $3,805.04
2.$12,750.00 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 $15,680.89; interest $2,930.89

  1. A = P(1 + r)n = $12,750.00 × (1 + 0.03)7
  2. = $12,750.00 × 1.229874
  3. ≈ $15,680.89
  4. Interest = $15,680.89 − $12,750.00 = $2,930.89
3.$5,750.00 is invested at 6% per year, compounded yearly, for 2 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $6,460.70; interest $710.70

  1. A = P(1 + r)n = $5,750.00 × (1 + 0.06)2
  2. = $5,750.00 × 1.1236
  3. ≈ $6,460.70
  4. Interest = $6,460.70 − $5,750.00 = $710.70
4.$1,750.00 is invested at 4% per year, compounded yearly, for 6 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $2,214.31; interest $464.31

  1. A = P(1 + r)n = $1,750.00 × (1 + 0.04)6
  2. = $1,750.00 × 1.265319
  3. ≈ $2,214.31
  4. Interest = $2,214.31 − $1,750.00 = $464.31
5.Compare $2,000.00 invested for 9 years at 4.5% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $162.19

  1. Simple: I = $2,000.00 × 0.045 × 9 = $810.00
  2. Compound: A = $2,000.00 × 1.0459 ≈ $2,972.19, so interest ≈ $972.19
  3. Difference = $972.19 − $810.00 = $162.19
6.$8,500.00 is invested at 6% per year, compounded yearly, for 7 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $12,780.86; interest $4,280.86

  1. A = P(1 + r)n = $8,500.00 × (1 + 0.06)7
  2. = $8,500.00 × 1.50363
  3. ≈ $12,780.86
  4. Interest = $12,780.86 − $8,500.00 = $4,280.86
7.$3,250.00 is invested at 4% per year, compounded yearly, for 8 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $4,447.85; interest $1,197.85

  1. A = P(1 + r)n = $3,250.00 × (1 + 0.04)8
  2. = $3,250.00 × 1.368569
  3. ≈ $4,447.85
  4. Interest = $4,447.85 − $3,250.00 = $1,197.85
8.$6,500.00 is invested at 2% per year, compounded yearly, for 2 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $6,762.60; interest $262.60

  1. A = P(1 + r)n = $6,500.00 × (1 + 0.02)2
  2. = $6,500.00 × 1.0404
  3. ≈ $6,762.60
  4. Interest = $6,762.60 − $6,500.00 = $262.60
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