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Year 12 Simple and Compound Interest Worksheet — Level 2 — Practice Set 3 — 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 3 — Answers

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

1.$14,000.00 is invested at 4.5% per year, compounded yearly, for 6 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $18,231.64; interest $4,231.64

  1. A = P(1 + r)n = $14,000.00 × (1 + 0.045)6
  2. = $14,000.00 × 1.30226
  3. ≈ $18,231.64
  4. Interest = $18,231.64 − $14,000.00 = $4,231.64
2.$15,000.00 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 $20,073.38; interest $5,073.38

  1. A = P(1 + r)n = $15,000.00 × (1 + 0.06)5
  2. = $15,000.00 × 1.338226
  3. ≈ $20,073.38
  4. Interest = $20,073.38 − $15,000.00 = $5,073.38
3.$10,500.00 is invested at 8% per year, compounded yearly, for 4 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $14,285.13; interest $3,785.13

  1. A = P(1 + r)n = $10,500.00 × (1 + 0.08)4
  2. = $10,500.00 × 1.360489
  3. ≈ $14,285.13
  4. Interest = $14,285.13 − $10,500.00 = $3,785.13
4.Find the simple interest on $8,750.00 invested at 3% per year for 6 years. What is the total value at the end?

Answer: Interest $1,575.00; total $10,325.00

  1. I = P × r × n = $8,750.00 × 0.03 × 6
  2. = $1,575.00
  3. Total = $8,750.00 + $1,575.00 = $10,325.00
5.Find the simple interest on $7,750.00 invested at 2.5% per year for 4 years. What is the total value at the end?

Answer: Interest $775.00; total $8,525.00

  1. I = P × r × n = $7,750.00 × 0.025 × 4
  2. = $775.00
  3. Total = $7,750.00 + $775.00 = $8,525.00
6.$9,000.00 is invested at 2.5% per year, compounded yearly, for 6 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $10,437.24; interest $1,437.24

  1. A = P(1 + r)n = $9,000.00 × (1 + 0.025)6
  2. = $9,000.00 × 1.159693
  3. ≈ $10,437.24
  4. Interest = $10,437.24 − $9,000.00 = $1,437.24
7.$2,250.00 is invested at 5% per year, compounded yearly, for 4 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $2,734.89; interest $484.89

  1. A = P(1 + r)n = $2,250.00 × (1 + 0.05)4
  2. = $2,250.00 × 1.215506
  3. ≈ $2,734.89
  4. Interest = $2,734.89 − $2,250.00 = $484.89
8.$14,250.00 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 $19,069.71; interest $4,819.71

  1. A = P(1 + r)n = $14,250.00 × (1 + 0.06)5
  2. = $14,250.00 × 1.338226
  3. ≈ $19,069.71
  4. Interest = $19,069.71 − $14,250.00 = $4,819.71
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