# Basic Concepts Simple Interest

9 Questions | Total Attempts: 5900  Settings  This test involves the use of the simple interest formula to find, principal P, amount A, Rate R, Time in years, Simple InterestI let's begin and learn about it!

• 1.
Mr.   Smith deposited \$40, 000 in a bank and earned simple interest at 7 % per annum for two years. Calculate the interest earned at the end of the period.
• A.

\$ 4000

• B.

\$2800

• C.

\$5600

• D.

\$3400

• E.

\$200

• 2.
Principal + Interest = ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• 3.
1. How much simple  interest  is due on a loan of  US\$120 for two years if the annual rate of interest is 5 ½ %.
• A.

\$12

• B.

\$13.20

• C.

\$26.40

• D.

\$26

• E.

\$33

• 4.
1. A man wishes to invest \$1500  . He can invest in   uLintplus Investment club which pays simple interest of 8%for 3 years. What is the amount in his account after 3 years
• A.

\$18321

• B.

\$1860

• C.

\$1830

• D.

\$1524

• E.

\$5024

• 5.
Calculate  the time T for \$1000 to become\$1300 at a rate of 5 %
• A.

3 years

• B.

6 years

• C.

9 years

• D.

6. 5 months

• E.

10 years

• 6.
Find the sum that amounts to \$2040 in 6 months at 4 %
• A.

\$ 200

• B.

\$2000

• C.

\$1300

• D.

\$2400

• E.

\$1020

• 7.
When you borrow money from the bank you pay
• 8.
.............................the percent charged or earned
• 9.
The amount of money borrowed or invested is called
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