 New Zealand
Level 6 - NCEA Level 1

Graphs of Simple Interest

Interactive practice questions

$\$6000$$6000 is deposited into an account, and earns simple interest at a rate of 6%6% p.a. for 1010 years. a Complete the table of values below, calculating the interest II earned after nn years.  nn (years) 11 22 33 44 55 1010 II (dollars) \360$$360 $\$720$$720 \$$$$\editable{} \$$$$\editable{} \$$$$\editable{} \$$$$\editable{} b Now draw a graph of the interest earned over time. Loading Graph... Easy Approx 3 minutes Sign up to try all questions Kenneth borrows \23000$$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