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11th Grade Simple and Compound Interest Worksheet — Level 3 — Answers

Answer sheet with worked solutions for the 11th Grade financial math worksheet.

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Success TutoringWorksheetsAnswer sheet11th Grade · Mathematics · Financial Mathematics

11th 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.$11,000.00 is invested at 8% per year, compounded yearly, for 10 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $23,748.17; interest $12,748.17

  1. A = P(1 + r)n = $11,000.00 × (1 + 0.08)10
  2. = $11,000.00 × 2.158925
  3. ≈ $23,748.17
  4. Interest = $23,748.17 − $11,000.00 = $12,748.17
2.$4,000.00 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 $4,329.73; interest $329.73

  1. A = P(1 + r)n = $4,000.00 × (1 + 0.02)4
  2. = $4,000.00 × 1.082432
  3. ≈ $4,329.73
  4. Interest = $4,329.73 − $4,000.00 = $329.73
3.Compare $7,250.00 invested for 2 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: $4.53

  1. Simple: I = $7,250.00 × 0.025 × 2 = $362.50
  2. Compound: A = $7,250.00 × 1.0252 ≈ $7,617.03, so interest ≈ $367.03
  3. Difference = $367.03 − $362.50 = $4.53
4.Compare $10,500.00 invested for 2 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: $6.56

  1. Simple: I = $10,500.00 × 0.025 × 2 = $525.00
  2. Compound: A = $10,500.00 × 1.0252 ≈ $11,031.56, so interest ≈ $531.56
  3. Difference = $531.56 − $525.00 = $6.56
5.$9,500.00 is invested at 5% per year, compounded yearly, for 3 years. Find the final amount and the interest earned, to the nearest cent.

Answer: Amount $10,997.44; interest $1,497.44

  1. A = P(1 + r)n = $9,500.00 × (1 + 0.05)3
  2. = $9,500.00 × 1.157625
  3. ≈ $10,997.44
  4. Interest = $10,997.44 − $9,500.00 = $1,497.44
6.Compare $6,000.00 invested for 7 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: $82.11

  1. Simple: I = $6,000.00 × 0.025 × 7 = $1,050.00
  2. Compound: A = $6,000.00 × 1.0257 ≈ $7,132.11, so interest ≈ $1,132.11
  3. Difference = $1,132.11 − $1,050.00 = $82.11
7.Compare $10,750.00 invested for 8 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: $2,267.50

  1. Simple: I = $10,750.00 × 0.08 × 8 = $6,880.00
  2. Compound: A = $10,750.00 × 1.088 ≈ $19,897.50, so interest ≈ $9,147.50
  3. Difference = $9,147.50 − $6,880.00 = $2,267.50
8.Compare $11,000.00 invested for 5 years at 4% per year as simple interest and as interest compounded yearly. How much more does compound interest earn, to the nearest cent?

Answer: $183.18

  1. Simple: I = $11,000.00 × 0.04 × 5 = $2,200.00
  2. Compound: A = $11,000.00 × 1.045 ≈ $13,383.18, so interest ≈ $2,383.18
  3. Difference = $2,383.18 − $2,200.00 = $183.18
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