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?

Answers:

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