NZ Level 6 (NZC) Level 1 (NCEA)
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Graphs of Simple Interest

Interactive practice questions

$\$6000$$6000 is deposited into an account, and earns simple interest at a rate of $6%$6% p.a. for $10$10 years.

a

Complete the table of values below, calculating the interest $I$I earned after $n$n years.

$n$n (years) $1$1 $2$2 $3$3 $4$4 $5$5 $10$10
$I$I (dollars) $\$360$$360 $\$720$$720 $\$$$$\editable{}$ $\$$$$\editable{}$ $\$$$$\editable{}$ $\$$$$\editable{}$
b

Now draw a graph of the interest earned over time.

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Easy
Approx 3 minutes
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Kenneth borrows $\$23000$$23000, which generates simple interest at a rate of $3%$3% p.a. until he pays back the money after $5$5 years.

An amount of $\$4000$$4000 is to be invested at a simple interest rate of $6%$6% per annum.

The graph below shows the time taken to repay a loan of $\$3000$$3000 with the same sized repayments, under two different simple interest rates.

Which loan has the higher interest rate?

Outcomes

NA6-3

Apply everyday compounding rates

91026

Apply numeric reasoning in solving problems

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