Name _____________________________ Date ___________________
Interest Word Problems
Solve each problem. Round to the nearest cent.
(For simplicity assume 360 days in a year)

1.

 Jane borrowed \$2,850 from the bank for 1 year at 4% interest. When Jane pays the bank back in 1 year, how much in principle and interest altogether will be paid?

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2.

 Jane deposited \$22,000 at a bank that pays 10% interest. Bill deposited \$16,000 at a bank that pays 16% interest. Who will receive more interest in a year, and by how much more?

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3.

 Bill borrowed \$26,000 for 210 days at 9% annual interest. However, Bill received a bonus from his boss and was able to repay the loan in 60 days. How much interest did Bill save by paying the loan early?

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4.

 Albert spent \$800 on a edHelper credit card. The charge card charges a yearly interest rate of 16%. edHelper adds this interest to the principal after each year, and Albert needs to pay interest both on the principal and the added interest. What will be the balance after 4 years?

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5.

 Michael purchased a house for \$147,000. To pay for the house, Michael took out a 30 year mortgage and pays the bank a yearly interest fee of 12.3%. In five years, how much in interest fees was paid to the bank?

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6.

 Bill deposited \$15,000 in an account that pays 6.4% interest each year. The amount of interest is paid at the end of each year. How much will the account have after 3 years?

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