## GED Practice

### GED Math Review: Solving Interest Problems

All interest rates in problem 1 through 22 are annual rates.
A. Find the interest on the following loans.

Questions:

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

B. Find the interest earned on these investments.
7. \$3,200 invested at 5 1/2% interest for 1 year
8. \$500 invested at 8% interest for 6 1/2 years
9. \$2,300 invested at 4% interest for 6 months
10. \$800 invested at 7.5% interest for 3 months
11. \$600 invested at 3 3/4% interest for 2 years

C. Find the total amount to be paid back on these loans.
12. A loan of \$600 at 10% for 6 months
13. A loan of \$5,400 at 8% for  9 months
14. A loan of \$8,000 at 12% for 5 years
15. A loan of \$300 at 6% for 4 months

D. Solve.
16. 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?
17. 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
18. 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%.
19. 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?
20. 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. 21. 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?
22. How much would they earn on an investment of \$2,500 for 9 months at New Vista Accounts?

1. \$300
2. \$228
3. \$36
4. \$50
5. \$113.40
6. \$330
7. \$176
8. \$260
9. \$46
10. \$15
11. \$45
12. \$630
13. \$5,724
14. \$12,800
15. \$306
16. \$6,600
17. \$1,262.50
18. 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%.
19. \$1,805
20. \$5,512.50
21. \$125
22. \$112.50

Reference:

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