Simple and Compound Interest and depreciation review questions

Dwayne

1)      $7450 is invested at 7% per annum for 8 years

a) What is the simple interest payable?

b) Find the amount accruing for the investment

 

2)      Sammy invested $2380 at 9% per annum for 10 years calculate

a)  The simple interest payable

b) The total amount of money Sammy collected at the end of the 10 year period

 

3)      An old lady  invested $16 400 for 7 years at 8 ½ % per annum

a) Determine the simple interest paid

b) Calculate the amount of money she collected after the period of 7 years

 

4)      Miss George Ann borrowed $11 250 from a lending institution at 15.5 % per annum simple interest for 5 years

Find:

a)   The sum of money paid in interest to the institution

b)      The total amount of money repaid to the institution

c)  The value of each monthly installment

 

5)      Find the principal that will earn $555 in 4 years at 5% simple interest

 

6)      Mr. Lubin took a loan from a bank at 10.5% per annum for 9 months and repaid $635.25 simple interest. Find the amount of money Mr. Lubin borrowed from the bank.

 

 

7)      Calculate the rate per cent per annum if $455 interest is paid when $1655 is invested for 5 years

 

8)      The simple interest on $27 000 for 8 ½ years is $9000. Calculate the rate per cent per annum.

 

9)      Find the number of years in which $1776 will earn $444 at 5% per year

 

10)  Find the number of years in which $2000 invested at 15% per annum will earn $1800

 

11)   Calculate the compound interest on investing $1220 for 3 years at 8% per annum

 

12)   Calculate the compound interest earned when $16,750 is invested for 6 years at 12% per annum

 

13)   Calculate the book value of a new Nissan costing $49,000 after 7 years if it depreciates each year by 14%

 

14)  Calculate the book value and depreciation of a table and chairs costing $44,600 after 4 years depreciating at 5% per annum

 

15)   A man bought a mini bus for $50 450. After using it for 4 years he decided to sell it for a dealer. The dealer estimated a depreciation of 16% for the first year of its use and a further 16% on its reduced value for the other 3 years.

a)      Calculate the value of the mini bus after 4 years

b)      Express the value of the mini bus after 4 years as a percentage of the original value

c)      Express the depreciation after the 4 year period as a percentage of the original value

 

 

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