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Year 10 Simple and Compound Interest Worksheet — Level 3 — Practice Set 4 — 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 4 — 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 3% per year, compounded yearly, for 6 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $13,433.09; interest $2,183.09

  1. A = P(1 + r)n = $11,250.00 × (1 + 0.03)6
  2. = $11,250.00 × 1.194052
  3. ≈ $13,433.09
  4. Interest = $13,433.09 − $11,250.00 = $2,183.09
2.Compare $13,500.00 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: $1,094.78

  1. Simple: I = $13,500.00 × 0.045 × 9 = $5,467.50
  2. Compound: A = $13,500.00 × 1.0459 ≈ $20,062.28, so interest ≈ $6,562.28
  3. Difference = $6,562.28 − $5,467.50 = $1,094.78
3.Compare $6,750.00 invested for 2 years at 6% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $24.30

  1. Simple: I = $6,750.00 × 0.06 × 2 = $810.00
  2. Compound: A = $6,750.00 × 1.062 ≈ $7,584.30, so interest ≈ $834.30
  3. Difference = $834.30 − $810.00 = $24.30
4.$7,750.00 is invested at 2% per year, compounded yearly, for 10 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $9,447.21; interest $1,697.21

  1. A = P(1 + r)n = $7,750.00 × (1 + 0.02)10
  2. = $7,750.00 × 1.218994
  3. ≈ $9,447.21
  4. Interest = $9,447.21 − $7,750.00 = $1,697.21
5.Compare $3,000.00 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: $207.98

  1. Simple: I = $3,000.00 × 0.08 × 5 = $1,200.00
  2. Compound: A = $3,000.00 × 1.085 ≈ $4,407.98, so interest ≈ $1,407.98
  3. Difference = $1,407.98 − $1,200.00 = $207.98
6.$5,000.00 is invested at 2% per year, compounded yearly, for 4 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $5,412.16; interest $412.16

  1. A = P(1 + r)n = $5,000.00 × (1 + 0.02)4
  2. = $5,000.00 × 1.082432
  3. ≈ $5,412.16
  4. Interest = $5,412.16 − $5,000.00 = $412.16
7.$11,500.00 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 $15,645.62; interest $4,145.62

  1. A = P(1 + r)n = $11,500.00 × (1 + 0.08)4
  2. = $11,500.00 × 1.360489
  3. ≈ $15,645.62
  4. Interest = $15,645.62 − $11,500.00 = $4,145.62
8.$8,000.00 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 $9,004.07; interest $1,004.07

  1. A = P(1 + r)n = $8,000.00 × (1 + 0.03)4
  2. = $8,000.00 × 1.125509
  3. ≈ $9,004.07
  4. Interest = $9,004.07 − $8,000.00 = $1,004.07
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