Simple Interest Worksheet
A Grade 7 math worksheet focusing on understanding and calculating simple interest.
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Simple Interest Worksheet
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Read each question carefully and answer to the best of your ability. Show all your work for calculation questions.
1. Simple interest is calculated only on the original amount.
2. The formula for simple interest is I = P × R × T, where P stands for , R for , and T for .
3. The interest rate (R) is usually expressed as a .
4. What is the simple interest on $500 at an annual interest rate of 4% for 2 years?
$20
$40
$50
$100
5. If you deposit $1,000 into a savings account with a simple interest rate of 3% per year, how much interest will you earn in 5 years?
$30
$100
$150
$200
6. Sarah invested $2,000 in a bond that pays 6% simple interest annually. How much interest will she earn in 3 years? What will be the total amount in her account after 3 years?
7. John took out a loan for $1,500 at a simple interest rate of 8% per year. If he pays back the loan in 6 months, how much interest will he owe?
8. A bank offers a simple interest rate of 2.5% on savings accounts. If you want to earn $75 in interest in 4 years, how much principal must you deposit?
9. The 'T' in the simple interest formula (I = PRT) always represents time in months.
True
False
10. Simple interest is typically used for short-term loans.
True
False