Interest Word Problems

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?

• $827.52

• $831.10

• $839.45

• $846.80

Principal: $5000
Interest Rate: 3.75%
Time: 25 years
Compounded Monthly
State the future account balance.

• $12712.31

• $12,749.30

• $12,657.59

• $12550.84

Riley invested $1,000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Riley earn in 15 years?

• $1,584.62

• $2,651.39

• $2,706.86

• $1,825.10

Olivia would like to buy some new furniture for her home. She decides to buy the furniture on credit with 9.5% interest compounded quarterly. If she spent $7,400, how much total will she have paid after 8 years.

• $15,415.94

• $15,683.28

• $15,927.56

• $16,109.05

Fong wants to restore a '66 Mustang in 8 years. He puts $150 into an account every month that pays 3.5% interest, compounded monthly. How much is in the account in 8 years?

• $16,590.38

• $10,496.77

• $76,108.90

• $71,984.01

Given an investment of$ 1,500:
Which investment would have a larger balance after 5 years?
4% compounded monthly
3.9% compounded daily.

• 4% compounded monthly

• 3.9% compounded daily.

Principal = $500
Interest rate =5%
Time = 5 years
What is the interest earned?

• 95

• 105

• 125

• 135

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120

• $144

• $1,200

• $1,440

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

• $7.50

• $26.25

• $87.5

• $262.50

Ann puts $300 in a bank account earning 4% interest.  How much will she earn in interest in 1 year?

• 4

• 8

• 12

• 16