Interest Problems

Each of the problems below is a link. If you click on the problem, it will take you to a YouTube video of a full, step-by-step solution for the problem. You may try these problems as practice and use the videos to check your answer, or you can just watch the videos to see more worked-out example problems.

1. Shahzan has $30,000 to invest. He puts some of the money in a bond fund that pays 5% simple interest, and he puts the rest in a stock fund that pays 8% simple interest. If he earned $2,070 in interest after one year, how much did he invest in the stock fund, and how much did he invest in the bond fund?
2. You won $240,000 in the lottery. You decided to deposit some of it in a savings account earning 2% interest, and you put the rest into a certificate of deposit that pays 3% interest. If you earned $5,600 in interest after one year, how much did you deposit in each account?
3. Cindy took out two student loans to pay her $30,000 tuition bill. She took out a government loan with a 3.5% interest rate, and she covered the rest with a private loan that had a 6% interest rate. What was the value of each loan if the total amount of interest after one year was $1,425?