Calculating simple interest is an essential skill for anyone who maintains a bank account, carries a credit card balance, or applies for a loan. The free printable worksheets in this lesson will improve your homeschool math lessons and help your students become better at calculations.

This collection of worksheets will also help students understand the process using word problems. Answers are provided for each of the five worksheets on the second page for ease of grading.

## Lesson Introduction

Before having students start on the worksheets, explain that when you borrow money, you have to repay the amount you borrowed as well as any added interest charges, which represents the cost of borrowing. In the same way, explain to students that when you lend money or deposit funds in interest-bearing accounts, you typically earn interest income for making your money available to other people.

## Simple Interest Worksheet 1

In this exercise, students will answer 10 word problems about calculating interest. These exercises will help homeschoolers learn how to calculate the rate of return on investments and illustrate how interest can accrue over time.

Students will answer such questions as,

"How much interest does a $318 investment earn at 9 percent over one year?"

Explain to students that the answer would be $28.62 because $318 x 9 percent is the same as $318 x 0.09, which equals $28.62. Explain to students that they would have to pay this amount of interest *in addition *to repaying the principal, the amount of the original loan, $318.

## Simple Interest Worksheet 2

These 10 questions will reinforce the lessons from worksheet No. 1. Homeschoolers and other students will learn how to calculate rates and determine interest payments. For this PDF, students will answer word problem questions such as:

"If the balance at the end of eight years on an investment of $630 that has been invested at a rate of 9 percent is $1,083.60, how much was the interest?"

If students are struggling, explain that calculating this answer involves only simple subtraction, where you subtract the initial investment of $630 from the ending balance of $1,083.60. Students would set up the problem as follows:

$1,083.60 – $630 = $453.60

Explain that some of the information in the question was extraneous and not necessary to solve the problem. For this problem, you don't need to know the years of the loan (eight years) or even the interest rate; you only need to know the beginning and ending balance.

## Simple Interest Worksheet 3

Use these word questions to continue practicing how to calculate simple interest. Students can also use this exercise to learn about the principal, rate of return (the net gain or loss on an investment over a specified time), and other terms commonly used in finance.

## Simple Interest Worksheet 4

Teach your students the basics of investing and how to determine which investments will pay the most over time. This worksheet will help your homeschoolers polish their calculating skills.

## Simple Interest Worksheet 5

Use this final worksheet to review the steps for calculating simple interest. Take time to answer questions your homeschoolers may have about how banks and investors use interest calculations.