Interest Problems

1. You deposit $5,000 on your wedding day. If the money earns 4% interest, how much money will you have on your twentieth wedding anniversary?

2. Your grandfather loans you $10,000 for college expenses. The loan must be paid back four years after your graduation. Interest accrues for eight years. How much will you end up paying your grandfather back if he charges 2% interest?

3. What interest would you earn if you deposit $2,000 at 8.5% for six years?

4. What interest would you earn if you deposit $8,000 at 6% for four years?

5. You take out a small loan to take a vacation to Hawaii. You borrow $15,000 for seven years at 4% interest. What interest would you pay?

6. You deposit $1,000 in the bank for five years at 3.5% interest. How much money would be in the account?

7. For high school graduation, you receive $2,500. You place it in the credit union for with a rate of 4%. How much money could you withdraw in five years?

8. You borrow $500 for one year. The interest rate is 7%. How much will you have to pay at the end of that year?