wikiHow Calculating Interest Rate Practice Problems 1. A loan of $10,000 is charged 6% simple interest over 3 years. What is the total interest charged? 2. If a loan of $5,000 is charged 8% compounded annually for 5 years, what is the total amount owed at the end of the loan term? 3. A bond with a face value of $1,000 is sold for $950 and matures in 5 years. What is the yield to maturity? 4. A savings account with a balance of $1,000 is charged 2% interest annually. How much interest will be earned in one year? 5. A credit card charges 1.5% interest per month on a balance of $2,000. What is the interest charged for one month? 6. A car loan of $15,000 is charged 7.5% interest compounded monthly over a 4-year term. What is the monthly payment? 7. An investment earns 10% compounded quarterly over a 5-year period. What is the total amount earned on a $2,500 investment? 8. A personal loan of $7,500 is charged 12% interest compounded monthly over a 3-year term. What is the total interest charged? 9. A mortgage with a balance of $250,000 is charged 4% interest compounded monthly over a 30-year term. What is the monthly payment? 10. An annuity pays $500 per month for 10 years, with payments beginning one month from now. If the interest rate is 6%, what is the present value of the annuity? 11. A company borrows $50,000 for 3 years at an interest rate of 9% compounded quarterly. What is the total amount owed at the end of the loan term? 12. A certificate of deposit with a face value of $5,000 is sold for $4,800 and matures in 2 years. What is the yield to maturity? 13. A student loan of $20,000 is charged 5% interest compounded annually over a 10-year term. What is the monthly payment? 14. An investment earns 8% compounded monthly over a 5-year period. What is the total amount earned on a $1,000 investment? 15. A savings account with a balance of $2,500 is charged 1.5% interest compounded annually. How much interest will be earned in 5 years? Page