**All interest rates in problem 1 through 22 are annual rates.**

A. Find the interest on the following loans.

A. Find the interest on the following loans.

- A loan of $1,250 at 12% for 2 years
- A loan of $2,400 at 9.5% for 1 year
- A loan of $900 at 8% for 6 months
- A loan of $4,000 at 5% for 3 months
- A loan of $840 at 9% for 18 months
- A loan of $1,100 at 7.5% for 4 years

B. Find the interest earned on these investments. - $3,200 invested at 5 1/2% interest for 1 year
- $500 invested at 8% interest for 6 1/2 years
- $2,300 invested at 4% interest for 6 months
- $800 invested at 7.5% interest for 3 months
- $600 invested at 3 3/4% interest for 2 years
**C. Find the total amount to be paid back on these loans.** - A loan of $600 at 10% for 6 months
- A loan of $5,400 at 8% for 9 months
- A loan of $8,000 at 12% for 5 years
- A loan of $300 at 6% for 4 months
**D. Solve.** - Mr. Bradford bought a delivery van. He borrowed $20,000 at 8 1/4% interest for 4 years. How much will he pay in interest on the loan?
- Bob wants to produce advertising brochures for his carpet-cleaning company. He borrows $1,250.00 for 3 months at 4%. What is the total amount that he pays back?
- $1,250.00
- $1,262.50
- 1,300.00
- 1,400.00
- Compare these two values. Choose the answer.
- The interest paid when $120.00 is borrowed for 4 months at 5%
**is greater than**the interest paid when $140.00 is borrowed for 6 months at 4%. - The interest paid when $120.00 is borrowed for 4 months at 5%
**is less than**the interest paid when $140.00 is borrowed for 6 months at 4%. - The interest paid when $120.00 is borrowed for 4 months at 5%
**is equal to**the interest paid when $140.00 is borrowed for 6 months at 4%. - Tony borrows $9,500 to make repairs to his warehouse. He borrows the money at 9 1/2 for 2 years. How much will he pay in interest on the loan?
- Sandy borrowed $4,500 for 3 years to buy a used car. Interest on the loan is 7.5%. What is the total amount she pays back?

Refer to the following information to answer question 21 and 22. - The Grahams plan to invest $2,500 for up to 1 year. How much interest would they earn at Capital Investments if they invest their money for 1 year?
- How much would they earn on an investment of $2,500 for 9 months at New Vista Accounts?

Answers:

- $300
- $228
- $36
- $50
- $113.40
- $330
- $176
- $260
- $46
- $15
- $45
- $630
- $5,724
- $12,800
- $306
- $6,600
- $1,262.50
- The interest paid when $120.00 is borrowed for 4 months at 5%
**is less than**the interest paid when $140.00 is borrowed for 6 months at 4%. - $1,805
- $5,512.50
- $125
- $112.50

Reference:

Complete Test Preparation for the GED Test 2014 by Steck-Vaughn