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10th Grade Simple and Compound Interest Worksheet — Level 3 — Answers

Answer sheet with worked solutions for the 10th Grade financial math worksheet.

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Success TutoringWorksheetsAnswer sheet10th Grade · Mathematics · Financial Mathematics

10th Grade Simple and Compound Interest Worksheet — Level 3 — Answers

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

1.Compare $4,250.00 invested for 6 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: $248.71

  1. Simple: I = $4,250.00 × 0.06 × 6 = $1,530.00
  2. Compound: A = $4,250.00 × 1.066 ≈ $6,028.71, so interest ≈ $1,778.71
  3. Difference = $1,778.71 − $1,530.00 = $248.71
2.Compare $14,250.00 invested for 3 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: $280.90

  1. Simple: I = $14,250.00 × 0.08 × 3 = $3,420.00
  2. Compound: A = $14,250.00 × 1.083 ≈ $17,950.90, so interest ≈ $3,700.90
  3. Difference = $3,700.90 − $3,420.00 = $280.90
3.$10,250.00 is invested at 5% per year, compounded yearly, for 2 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $11,300.63; interest $1,050.63

  1. A = P(1 + r)n = $10,250.00 × (1 + 0.05)2
  2. = $10,250.00 × 1.1025
  3. ≈ $11,300.63
  4. Interest = $11,300.63 − $10,250.00 = $1,050.63
4.Compare $5,500.00 invested for 4 years at 2% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $13.38

  1. Simple: I = $5,500.00 × 0.02 × 4 = $440.00
  2. Compound: A = $5,500.00 × 1.024 ≈ $5,953.38, so interest ≈ $453.38
  3. Difference = $453.38 − $440.00 = $13.38
5.Compare $3,500.00 invested for 3 years at 5% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $26.69

  1. Simple: I = $3,500.00 × 0.05 × 3 = $525.00
  2. Compound: A = $3,500.00 × 1.053 ≈ $4,051.69, so interest ≈ $551.69
  3. Difference = $551.69 − $525.00 = $26.69
6.$9,000.00 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 $12,044.03; interest $3,044.03

  1. A = P(1 + r)n = $9,000.00 × (1 + 0.06)5
  2. = $9,000.00 × 1.338226
  3. ≈ $12,044.03
  4. Interest = $12,044.03 − $9,000.00 = $3,044.03
7.$2,500.00 is invested at 4.5% per year, compounded yearly, for 10 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $3,882.42; interest $1,382.42

  1. A = P(1 + r)n = $2,500.00 × (1 + 0.045)10
  2. = $2,500.00 × 1.552969
  3. ≈ $3,882.42
  4. Interest = $3,882.42 − $2,500.00 = $1,382.42
8.Compare $4,250.00 invested for 6 years at 2.5% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $41.20

  1. Simple: I = $4,250.00 × 0.025 × 6 = $637.50
  2. Compound: A = $4,250.00 × 1.0256 ≈ $4,928.70, so interest ≈ $678.70
  3. Difference = $678.70 − $637.50 = $41.20
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