Math practice worksheet for calculating interest on various loan scenarios.

Let's solve each of the four interest problems step by step. All of these appear to involve simple interest, unless otherwise specified. The formula for simple interest is:

$$
I = P \times r \times t
$$

Where:
- $ I $ = Interest
- $ P $ = Principal (initial amount borrowed or spent)
- $ r $ = Annual interest rate (as a decimal)
- $ t $ = Time in years

Then, the total amount owed is:

$$
A = P + I
$$

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🔹 Problem 1 (Orange Box):

> You are taking a trip to Europe and need to borrow $5000 from the bank. They charge you 7% interest. You agree to pay the loan back in 3 years. How much will you owe altogether?

- $ P = 5000 $
- $ r = 7\% = 0.07 $
- $ t = 3 $

$$
I = 5000 \times 0.07 \times 3 = 1050
$$

$$
A = 5000 + 1050 = 6050
$$

✔ Answer: You will owe $6,050 altogether.

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🔹 Problem 2 (Blue Box):

> Your brother wants to build a spaceship but needs money for the supplies. He charges $6,500 in supplies on his credit card that has 22% interest. How much interest will he pay in 2 years?

- $ P = 6500 $
- $ r = 22\% = 0.22 $
- $ t = 2 $

$$
I = 6500 \times 0.22 \times 2 = 2860
$$

✔ Answer: He will pay $2,860 in interest over 2 years.

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🔹 Problem 3 (Green Box):

> The boat of your dreams is up for sale for $14,000. The local credit union gives you a loan for 6% interest over 5 years. How much will you owe altogether?

- $ P = 14000 $
- $ r = 6\% = 0.06 $
- $ t = 5 $

$$
I = 14000 \times 0.06 \times 5 = 4200
$$

$$
A = 14000 + 4200 = 18200
$$

✔ Answer: You will owe $18,200 altogether.

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🔹 Problem 4 (Red Box):

> It has always been your dream to own a peacock farm. It will only cost you $27,500. You get a small business loan at 11% interest for 4 years. How much interest will you have to pay?

- $ P = 27500 $
- $ r = 11\% = 0.11 $
- $ t = 4 $

$$
I = 27500 \times 0.11 \times 4 = 12100
$$

✔ Answer: You will have to pay $12,100 in interest.

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✔ Final Answers Summary:

| Problem | Question | Answer |
|--------|---------|--------|
| 1 | Total owed on $5000 at 7% for 3 years | $6,050 |
| 2 | Interest on $6,500 at 22% for 2 years | $2,860 |
| 3 | Total owed on $14,000 at 6% for 5 years | $18,200 |
| 4 | Interest on $27,500 at 11% for 4 years | $12,100 |

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💡 Note: These calculations assume simple interest. If the problem intended compound interest, the answer would be different. However, since no compounding frequency is mentioned, simple interest is appropriate here.

Let me know if you'd like to see compound interest versions!