Testinar Grade 7 math

Simple Interest: Earning and Paying Interest

Students will build Grade 7 mastery of simple interest: earning and paying interest using models, equations, and test-style reasoning.

CH02-06 Percents and Financial Literacy
Name
Date
Score
____ / 8
Directions Solve each problem. Show your reasoning on the page or on separate paper. Check the answer key only after finishing.

  1. Using the simple interest formula \(I=Prt\), how much interest does \($800\) earn at an annual rate of \(5\%\) over \(3\) years?

    1. \($40\)
    2. \($240\)
    3. \($125\)
    4. \($120\)

  2. Maya deposits \($1200\) into a savings account with a simple interest rate of \(4\%\) per year. How much interest will she earn after \(2\) years?

    1. \($48\)
    2. \($240\)
    3. \($144\)
    4. \($96\)

  3. A loan of \($5000\) has a simple interest rate of \(6\%\) per year. What will be the total amount owed after \(4\) years?

    1. \($5600\)
    2. \($6000\)
    3. \($6200\)
    4. \($7000\)

  4. Jordan invests \($2000\) at a simple interest rate of \(3.5\%\) per year for \(5\) years. How much interest will he earn?

    1. \($70\)
    2. \($175\)
    3. \($350\)
    4. \($700\)

  5. A savings account earns \($75\) in interest from a principal of \($500\) at an annual rate of \(5\%\). How many years has the money been in the account?

    1. \(1.5\) years
    2. \(2\) years
    3. \(2.5\) years
    4. \(3\) years

  6. An investment of \($3000\) earns \($270\) in simple interest over \(2\) years. What is the annual interest rate?

    1. \(3\%\)
    2. \(9\%\)
    3. \(5\%\)
    4. \(4.5\%\)

  7. A car loan of \($15000\) is taken at a simple interest rate of \(7\%\) per year. How much total interest will be paid over \(6\) years?

    1. \($4500\)
    2. \($10500\)
    3. \($7000\)
    4. \($6300\)

  8. A principal amount earns \($200\) in interest at \(8\%\) annual rate over \(5\) years. What was the original principal?

    1. \($400\)
    2. \($800\)
    3. \($600\)
    4. \($500\)
Teacher and parent reference

Answer key and explanations

  1. D. \($120\)

    \(I=Prt=800\times0.05\times3=$120\).

  2. D. \($96\)

    STEP 1: Convert percentage to decimal: \(4\% = 4 \div 100 = 0.04\). STEP 2: \(I=1200\times0.04\times2=$96\).

  3. C. \($6200\)

    First find interest: \(I=5000\times0.06\times4=$1200\). Then \(A=P+I=5000+1200=$6200\).

  4. C. \($350\)

    \(I=2000\times0.035\times5=$350\). Convert \(3.5\%\) to \(0.035\).

  5. D. \(3\) years

    Using \(I=Prt\): \(75=500\times0.05\times t \Rightarrow 75=25t \Rightarrow t=3\).

  6. D. \(4.5\%\)

    \(270=3000\times r\times2 \Rightarrow 270=6000r \Rightarrow r=0.045=4.5\%\).

  7. D. \($6300\)

    \(I=15000\times0.07\times6=$6300\).

  8. D. \($500\)

    \(200=P\times0.08\times5 \Rightarrow 200=0.4P \Rightarrow P=$500\).

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