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Year 12 Simple and Compound Interest Worksheet — Level 2 — Practice Set 2 — Answers

Answer sheet with worked solutions for the Year 12 financial mathematics worksheet.

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Success TutoringWorksheetsAnswer sheetYear 12 · Mathematics · Financial Mathematics

Year 12 Simple and Compound Interest Worksheet — Level 2 — Practice Set 2 — Answers

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

1.$10,750.00 is invested at 4% per year, compounded yearly, for 3 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $12,092.29; interest $1,342.29

  1. A = P(1 + r)n = $10,750.00 × (1 + 0.04)3
  2. = $10,750.00 × 1.124864
  3. ≈ $12,092.29
  4. Interest = $12,092.29 − $10,750.00 = $1,342.29
2.Find the simple interest on $14,750.00 invested at 4% per year for 2 years. What is the total value at the end?

Answer: Interest $1,180.00; total $15,930.00

  1. I = P × r × n = $14,750.00 × 0.04 × 2
  2. = $1,180.00
  3. Total = $14,750.00 + $1,180.00 = $15,930.00
3.$4,750.00 is invested at 2.5% per year, compounded yearly, for 4 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $5,243.11; interest $493.11

  1. A = P(1 + r)n = $4,750.00 × (1 + 0.025)4
  2. = $4,750.00 × 1.103813
  3. ≈ $5,243.11
  4. Interest = $5,243.11 − $4,750.00 = $493.11
4.$7,250.00 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 $8,146.10; interest $896.10

  1. A = P(1 + r)n = $7,250.00 × (1 + 0.06)2
  2. = $7,250.00 × 1.1236
  3. ≈ $8,146.10
  4. Interest = $8,146.10 − $7,250.00 = $896.10
5.$12,750.00 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 $17,062.38; interest $4,312.38

  1. A = P(1 + r)n = $12,750.00 × (1 + 0.06)5
  2. = $12,750.00 × 1.338226
  3. ≈ $17,062.38
  4. Interest = $17,062.38 − $12,750.00 = $4,312.38
6.$14,750.00 is invested at 2% per year, compounded yearly, for 3 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $15,652.82; interest $902.82

  1. A = P(1 + r)n = $14,750.00 × (1 + 0.02)3
  2. = $14,750.00 × 1.061208
  3. ≈ $15,652.82
  4. Interest = $15,652.82 − $14,750.00 = $902.82
7.Find the simple interest on $13,750.00 invested at 2% per year for 4 years. What is the total value at the end?

Answer: Interest $1,100.00; total $14,850.00

  1. I = P × r × n = $13,750.00 × 0.02 × 4
  2. = $1,100.00
  3. Total = $13,750.00 + $1,100.00 = $14,850.00
8.Find the simple interest on $8,000.00 invested at 5% per year for 4 years. What is the total value at the end?

Answer: Interest $1,600.00; total $9,600.00

  1. I = P × r × n = $8,000.00 × 0.05 × 4
  2. = $1,600.00
  3. Total = $8,000.00 + $1,600.00 = $9,600.00
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