Can someone give me 10 examples of word problems involving interest?

Answer 1

In interest questions, there are four variables, which means there can be four "types" of questions. Calculating interest rate, amount of time, initial amount of money, and final amount of money. Here are four examples, one with each of the four variables missing.

Note: Remember that the interest formula is A=P(1+ i)^n

1. John is sixteen years old has $8,000 in the bank. He plans to have $10,000 in three years to pay for university. What interest rate would he need to be able to afford his tuition? ( Calculating interest rate)

2. Karen is 25 wants to have $35,000. She currently has only $5,000 and her bank's interest rate is 6% per year, compounded monthly. How old will she be when she reaches her goal? (Calculating time)

3. How much money would Sandra need to put in the bank in order to have $750,000 in forty years with an interest rate of 8% per year, compounded

monthly? (Calculating initial money required)

4. Chris has $15,000 in his bank account. His interest rate is 7% compounded monthly and he leaves the money in for three years. How much money will he have at the end of the three years? (Calculating final amount of money)