GRE Math : Interest
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Example Questions
Example Question #1 : How To Find Simple Interest
Harry borrowed $5000 from his parents at a rate of simple interest of 2% annually and paid it back in full in 30 months. What is the total amount of interest and principal his parents charged him?
none of these
Principal = $5000 (original amount)
Interest = 30 months = 2 years and a half
half a year's interest is
Total interest =
Example Question #2 : How To Find Simple Interest
What is the simple interest rate on an account that accrued 
The easiest way to do this is to translate the question into "is / of language." The question is asking, "What percentage of 
Solving for 
This is 
Example Question #1 : Interest
What is the interest rate on an account if an original balance of 
You can solve this by using the standard formula for simple interest (which is merely a derivative of standard applications of the formulas used for percentages in general). For our problem this is:
Divide both sides by 
Solve for 
This is:
Which is the same as:
Example Question #4 : How To Find Simple Interest
If a student borrows $200,000 at an interest rate of 6% compounded annually, when she graduates in 4 years how much money will she owe? Round to the nearest dollar.
$252,495
$257,543
$264,432
$265,432
$243,432
$252,495
This problem requires knowledge of the compound interest formula, 
Where 
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