wikiHow Calculating Interest Practice Problems 1. You borrow $5,000 with a 5% annual simple interest rate. What is the total interest owed after 3 years? 2. A loan of $10,000 is charged 8% compounded annually for 5 years. What is the total interest charged? 3. You invest $1,000 in a savings account that earns 3% interest, compounded quarterly. What is the total interest earned after 2 years? 4. A bond with a face value of $1,000 pays 6% interest annually and matures in 5 years. What is the total interest earned at maturity? 5. A credit card charges 1.5% interest per month on a balance of $2,000. What is the interest charged after 6 months? 6. A car loan of $15,000 is charged 7.5% interest compounded monthly over a 4-year term. What is the total interest charged? 7. An investment of $10,000 earns 8% interest compounded quarterly for 5 years. What is the total amount earned at maturity? 8. A mortgage with a balance of $250,000 is charged 4% interest compounded monthly over a 30-year term. What is the total interest charged? 9. A certificate of deposit with a face value of $5,000 is sold for $4,800 and matures in 2 years. What is the total interest earned at maturity if the interest rate is 2%? 10. You invest $2,500 in an annuity that pays $100 per month for 5 years. If the interest rate is 6%, what is the total interest earned? 11. A loan of $20,000 is charged 10% interest compounded monthly over a 5-year term. What is the total interest charged? 12. An investment of $1,500 earns 7% interest compounded annually for 10 years. What is the total amount earned at maturity? 13. A personal loan of $7,500 is charged 12% interest compounded quarterly over a 3-year term. What is the total interest charged? 14. You invest $1,000 in a mutual fund that has an annual return of 9%. What is the total amount earned after 7 years? 15. A savings account with a balance of $2,500 is charged 1.5% interest compounded annually. What is the interest earned after 2 years? Page