Simple Interest Worksheet

Simple Interest Worksheet

Read each question carefully and calculate the simple interest, principal, rate, or time as required. Show all your work.

1. Calculate the simple interest on a principal of $5,000 at an annual interest rate of 4% for 3 years.

2. Sarah borrowed $1,500 at a 6% annual interest rate. If she pays it back in 2.5 years, how much simple interest will she pay?

1. If the simple interest earned is $300 on an investment for 5 years at a 3% annual rate, the principal amount was  .

2. An investment of $2,000 earned $240 in simple interest over 4 years. The annual interest rate was  .

3. To earn $1,000 in simple interest on a principal of $10,000 at a 5% annual rate, the money must be invested for   years.

1. The formula for simple interest is:

2. What does 'P' represent in the simple interest formula?

1. Simple interest is calculated only on the initial principal amount.