# Interest Word Problems Worksheets

How to Calculate Interest - When learning money concepts, you will have to understand the types of interests. There are two types of interests, simple interest, and compounding interest. Simple interest is the simplest form of interest. It is a straightforward and simple method of calculating the interest charge on loan. You can find simple interest by multiplying the daily interest rate by the principal by the number of days that elapse between payments. The formula to calculate simple interest is given by; Simple Interest = P × I × N where: P = principle, I = daily interest rate, N = number of days between payments. This type of interest is common on automobile loans and other short-term loans.

• ### Basic Lesson

Demonstrates how to outline Interest Word Problems. A bank is offering its customers 3% interest on savings accounts. If a customer deposits \$1,500 in the account, how much interest does the account earn in 5 years?

• ### Intermediate Lesson

Uses slightly larger sentences and numbers than the basic lesson. An employee borrowed \$15,000 from a money lender at rate of 12 % per and repaid it after 9 months. How much did he repay?

• ### Independent Practice 1

Contains a series of 20 Interest Word Problems. The answers can be found below. A man borrowed some money at 15% simple interest and cleared the debt at the end of 2 years and 8 months by paying \$8898.75. Find the sum borrowed.

• ### Independent Practice 2

Features 20 Interest Word Problems. A man borrowed some money at 13 % interest and cleared the debt at the end of 1years and 8 months by paying \$5240. Find the sum borrowed.

• ### Homework Worksheet

10 word problems for students to work on at home. An example problem is provided and explained. Example: A milkman borrowed a certain amount of money at rate of 10% per annually for 7 months. If he paid \$730 after 18 months, find the principal.

• ### Skill Quiz

10 Interest Word Problems. A math scoring matrix is included. Example: A teacher borrowed a certain amount of money at the rate of 5% annually for 13 months. If he paid \$800 after 6 months, find the principal.

• ### Homework and Quiz Answer Key

Answers for the homework and quiz.