Interest Problems
Practice Questions
GMAT Quantitative Reasoning › Interest Problems
John deposits an amount of money in a savings account that pays compound interest. He does not deposit or withdraw during that time. How much money does he have at the end of five years?
Statement 1: John deposited $5,000.
Statement 2: The interest is compounded monthly.
John deposits an amount of money in a savings account that pays compound interest. He does not deposit or withdraw during that time. How much money does he have at the end of five years?
Statement 1: John deposited $5,000.
Statement 2: The interest is compounded monthly.
Today, I put 
(1) I have 
(2) The annual interest rate is 
Today, I put
(1) I have
(2) The annual interest rate is
Jenna needs 
What amount of money does Jenna need to invest today?
(1)
(2)
What amount of money did John invest at 8% simple interest?
(1) The amount of interest earned on this investment in one year is $400.
(2) John's investment is supposed to accumulate to 7,000 after 5 years.
Jake invests $5000 at 10% simple annual interest and another amount of money at 
(1) The total amount of interest earned on all investments at the end of one year is $800.
(2) 
On the same day, Robin and Rick each open a savings account that draws simple interest. Neither withdraws from or deposits into his or her account over the next five years. Throughout the five-year period, whose account accrues more interest?
Statement 1: Both accounts pay the same interest rate.
Statement 2: Robin deposited $400 more than Rick.
On January 2, Grant uses his $5,000 inheritance to open up a savings account that pays simple interest; he does not add to or withdraw from the account. How many years does it take for the account to be worth $6,000?
Statement 1: The account pays 4.5% annually.
Statement 2: The interest rate of his savings account is 2% less than that of his certificate of deposit in the same bank.
Jennifer's grandmother opens up a savings account for her that draws simple interest. No one adds to or withdraws from the account until Jennifer's 18th birthday.
Will there be $10,000 in the account by the time Jennifer turns 18?
Statement 1: Jennifer's grandmother opened the account the day Jennifer turned five years old.
Statement 2: The account pays 4.5% simple interest.