Loans: how the rate and the length change the total cost

Answer Key - Grade 8 Math Worksheet

Circle the best answer, or write your answer on the line.

1. 1.

   Ari reads Mr. Lane's pretend loan for a used car: $7,500 borrowed at 4.5% simple interest a year for 3 years. What is the total repaid?

   $8,512.50
2. 2.

   Bo reads Ms. Shaw's pretend loan for a piano: $3,600 borrowed at 5.5% simple interest a year for 2 years. What is the total repaid?

   $3,996
3. 3.

   Ms. Reyes's pretend car loan offer is $5,000 at 6% simple interest a year, for 3 years or 5 years. How much more interest does Jun find for the 5-year loan?

   $600
4. 4.

   Mr. Dunn's pretend truck loan offer is $12,000 at 4% simple interest a year, for 2 years or 4 years. How much more interest does Kira find for the 4-year loan?

   $960
5. 5.

   Ms. Frost's pretend couch loan offer is $2,500 at 8% simple interest a year, for 2 years or 4 years. How much more interest does Luz find for the 4-year loan?

   $400
6. 6.

   Mr. Grove compares two pretend car loans of $6,000 for 3 years, at 4% and at 7% simple interest a year. How much more interest does Noah find at 7%?

   $540
7. 7.

   Mr. Lane compares two pretend piano loans of $4,000 for 2 years, at 6% and at 9% simple interest a year. How much more interest does Ren find at 9%?

   $240
8. 8.

   Tala checks Ms. Hale's two pretend $5,000 car loans at simple interest. Loan A is 4% a year for 6 years; Loan B is 6% a year for 3 years. Which costs less to repay?

   • Loan A
   • Loan B
   • Both cost the same
9. 9.

   Ari checks Ms. Reyes's two pretend $3,000 couch loans at simple interest. Loan A is 7% a year for 2 years; Loan B is 4% a year for 4 years. Which costs less to repay?

   • Loan B
   • Both cost the same
   • Loan A
10. 10.

    Bo checks Mr. Cole's two pretend $6,000 van loans at simple interest. Loan A is 8% a year for 2 years; Loan B is 5% a year for 3 years. Which costs less to repay?

    • Loan B
    • Both cost the same
    • Loan A