The graph shows the amount of simple interest charged each year by a particular bank, on a 3-year loan:
Find the total amount of simple interest charged on a loan of \$5000.
Calculate the simple interest rate per annum, r, charged by the bank on 3-year loans.
The given graph shows an amount of \$4000 deposited into a savings account for 10 years earning simple interest:
How much interest has been earned in total over the 10-year period?
Find the interest rate to two decimal places.
\$6000 is deposited into an account, and earns simple interest at a rate of 6\% p.a. for 10 years.
Complete the table of values below, calculating the interest, I, earned after n years:
| n\text{ (years)} | 1 | 2 | 3 | 4 | 5 | 10 |
|---|---|---|---|---|---|---|
| I \text{ (dollars)} | \$360 | \$720 |
Sketch the graph of the interest earned over time.
Kenneth borrows \$23\,000, which generates simple interest at a rate of 3\% p.a. until he pays back the money after 5 years.
Complete the table of values below, calculating the interest, I, earned after n years:
| n\text{ (years)} | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| I \text{ (dollars)} |
Sketch the graph of the interest earned over time.
\$8000 is deposited into an account, and earns simple interest at a rate of 10\% p.a. for 5 years.
Complete the table of values below, calculating the interest I earned after n years:
| n\text{ (years)} | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| I \text{ (dollars)} | \$800 |
Sketch the graph of the interest earned over time.
Use the graph to determine how many years it takes to earn \$8000 in interest.
\$12\,000 is deposited into an account, and earns simple interest at a rate of 6\% p.a. for 6 months.
Complete the table of values below, calculating the interest, I, earned after n months:
| n\text{ (years)} | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| I \text{ (dollars)} | \$60 | \$120 |
Sketch the graph of the interest earned over time.
Use the graph of determine how many years it takes to earn \$720 in interest.
An amount of \$4000 is to be invested at a simple interest rate of 6\% per annum.
How much interest is earned each year?
Sketch the graph that shows the amount of the investment y, after x years.
Which feature of the graph represents the interest earned each year?
Describe the change in the graph that would occur if the amount was invested at a rate of 3 \% p.a. instead.
Bianca wants to take out a personal loan of \$4000, and has two options to choose from. Both Option A and Option B charge simple interest over a period of 8 years. The graphs representing the amount owing on each loan, y, after x years are shown below:
How much interest will she be charged each year if she goes with Option A?
How much interest will she be charged each year if she goes with Option B?
Which option will require Bianca to repay less?
How much less will she repay in total if she goes with Option A?
The following graph shows the time taken to repay a loan of \$3000 with the same sized repayments, under two different simple interest rates:
Which loan has the higher interest rate?
The following graph shows an amount of \$17\,000 being deposited into two different banks. Each bank offers simple interest at a different rate, and for different lengths of time.
Lisa wants her investment of \$17\,000 to grow to \$18\,000 by the time 8 years have passed. Which investment option should she take?
How many years longer will it take for \$17\,000 to grow to \$18\,000 under Option B than under Option A?
The graphs of two investment options are shown:
Which option offers the higher simple interest rate?
How much is initially invested under Option B?
After how many years do the two investments reach the same value?
How many more years does it take for the investment to grow to \$3500 under Option A than under Option B?
\$1200 is to be deposited into an account that earns simple interest for 10 years. There are three available options shown in the given graph:
Which option earns the highest interest rate?
How much more is earned with Option A than earned with Option C?
If Option A has a \$50 setup fee, while options B and C are free to start, which is the best option for an investment of 10 years? Explain your answer.