Interest Word Problems

Lesson 1

Problem: Find the Simple Interest

Principal $6700.00

Interest Rate 5.25%

Time 8 yrs

Solution Simple Interest = (Principal X Rate X Time) / 100

Step 1:

                                          Solution     From this formula we can calculate the simple interest

Step 2: (6700 x 5.25 x 8) / 100

                                          Solution     Answer is:$2814

Step 3:

Complete

Try two practice problems:

Fill in the missing information. .

A. B.

Principal $1,600.00 Principal $4,212.00

Interest Rate 1.5% Interest Rate ?

Time in Months 4 Time in Months 6

Simple Interest? Simple Interest $356.3