Question 1

Joyce took out a loan for $21,900 at 12% on March 18, 2015, which will be due on January 9, 2016. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

Accepted Answer

A)  $2,167.10 
B)  $24,068.10 
C)  $24,038.40 
D)  $2,138.40 
E)  None of these 
A)  $2,167.10 
B)  $24,068.10 
C)  $24,038.40 
D)  $2,138.40 
E)  None of these B

Question 2

Given: an 11% 120-day $9,000 note. Find the adjusted balance (principal) using the U.S. Rule (360 days) after the first payment on the 65th day of $1,000.

Accepted Answer

The answer of Given: an 11% 120-day $9,000 note. Find...

Question 3

To convert time in days, it is necessary to multiply the time in years times 360 or 365.

Accepted Answer

A) True 
 B)False  True

Question 4

In calculating interest in the U.S. Rule from the last partial payment, the interest is subtracted from the adjusted balance.

Accepted Answer

A) True 
 B)False

Question 5

Interest on $5,255 at 12% for 30 days (use ordinary interest) is:

Accepted Answer

A)  $52.55 
B)  $55.25 
C)  $5.26 
D)  $5.25 
E)  None of these 
A)  $52.55 
B)  $55.25 
C)  $5.26 
D)  $5.25 
E)  None of these

Question 6

A note dated Dec. 13 and due July 5 runs for exactly:

Accepted Answer

A)  11 days 
B)  161 days 
C)  204 days 
D)  347 days 
E)  None of these 
A)  11 days 
B)  161 days 
C)  204 days 
D)  347 days 
E)  None of these

Question 7

Interest is equal to:

Accepted Answer

A)  Principal × rate divided by time 
B)  Principal divided by rate × time 
C)  Principal × time 
D)  Principal × rate × time 
E)  None of these 
A)  Principal × rate divided by time 
B)  Principal divided by rate × time 
C)  Principal × time 
D)  Principal × rate × time 
E)  None of these

Question 8

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Accepted Answer

The answer of Round all answers to the nearest cent....

Question 9

Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:

Accepted Answer

A)  $1,428,005.70 
B)  $4,128,005.70 
C)  $1,428,000.00 
D)  $1,420.70 
E)  None of these 
A)  $1,428,005.70 
B)  $4,128,005.70 
C)  $1,428,000.00 
D)  $1,420.70 
E)  None of these

Question 10

Bill Roe visits his local bank to see how long it will take for $1,000 to amount to $1,900 at a simple interest rate of 12 1/2%. Can you provide Bill with the solution to his problem in years?

Accepted Answer

The answer of Bill Roe visits his local bank to...

Question 11

The interest is the amount of money borrowed.

Accepted Answer

A) True 
 B)False

Question 12

In the U.S. Rule, the partial payment first covers the interest and the remainder reduces the principal.

Accepted Answer

A) True 
 B)False

Question 13

The federal government likes to use ordinary interest.

Accepted Answer

A) True 
 B)False

Question 14

With interest of $1,832.00 and a principal of $16,000 for 206 days, using the ordinary interest method, the rate is:

Accepted Answer

A)  20% 
B)  12% 
C)  2% 
D)  10% 
E)  None of these 
A)  20% 
B)  12% 
C)  2% 
D)  10% 
E)  None of these

Question 15

Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning of June is (use 360 days):

Accepted Answer

A)  $65,740.58 
B)  $64,470.58 
C)  $65,704.58 
D)  $56,470.85 
E)  None of these 
A)  $65,740.58 
B)  $64,470.58 
C)  $65,704.58 
D)  $56,470.85 
E)  None of these

Question 16

The U.S. Rule:

Accepted Answer

A)  Is used only by banks 
B)  Is never used by banks 
C)  Allows borrowers to receive interest credit 
D)  Is hardly used today 
E)  None of these 
A)  Is used only by banks 
B)  Is never used by banks 
C)  Allows borrowers to receive interest credit 
D)  Is hardly used today 
E)  None of these

Question 17

Ordinary interest is never used by banks.

Accepted Answer

A) True 
 B)False

Question 18

The time of a loan could be expressed in months, years, or days.

Accepted Answer

A) True 
 B)False

Question 19

Round all answers to the nearest cent. Woody's Café's real estate tax of $1,110.85 was due on November 1, 2014. Due to financial problems, Woody was unable to pay his café's real estate tax bill until January 15, 2015. The penalty for late payment is 8 1/4% ordinary interest. (A) What is the penalty Woody will have to pay and (B) what will Woody pay on January 15?
A. $19.09
B. $1,129.94

Accepted Answer

The answer of Round all answers to the nearest cent....

Question 20

Which of the following is not true of the U.S. Rule?

Accepted Answer

A)  Calculate interest on principal from date of loan to date of first payment 
B)  Allows borrower to receive proper interest credits 
C)  Can use 360 days in its calculations 
D)  Can involve more than one payment before maturity date 
E)  None of these 
A)  Calculate interest on principal from date of loan to date of first payment 
B)  Allows borrower to receive proper interest credits 
C)  Can use 360 days in its calculations 
D)  Can involve more than one payment before maturity date 
E)  None of these

Joyce took out a loan for $21,900 at 12% on March 18, 2015, which will be due on January 9, 2016. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

Given: an 11% 120-day $9,000 note. Find the adjusted balance (principal) using the U.S. Rule (360 days) after the first payment on the 65th day of $1,000.

To convert time in days, it is necessary to multiply the time in years times 360 or 365.

In calculating interest in the U.S. Rule from the last partial payment, the interest is subtracted from the adjusted balance.

Interest on $5,255 at 12% for 30 days (use ordinary interest) is:

A note dated Dec. 13 and due July 5 runs for exactly:

Interest is equal to:

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:

Bill Roe visits his local bank to see how long it will take for $1,000 to amount to $1,900 at a simple interest rate of 12 1/2%. Can you provide Bill with the solution to his problem in years?

The interest is the amount of money borrowed.

In the U.S. Rule, the partial payment first covers the interest and the remainder reduces the principal.

The federal government likes to use ordinary interest.

With interest of $1,832.00 and a principal of $16,000 for 206 days, using the ordinary interest method, the rate is:

Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning of June is (use 360 days):

The U.S. Rule:

Ordinary interest is never used by banks.

The time of a loan could be expressed in months, years, or days.

Which of the following is not true of the U.S. Rule?

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Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters

Exam 10: Simple Interest

Joyce took out a loan for $21,900 at 12% on March 18, 2015, which will be due on January 9, 2016. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

Given: an 11% 120-day $9,000 note. Find the adjusted balance (principal) using the U.S. Rule (360 days) after the first payment on the 65th day of $1,000.

To convert time in days, it is necessary to multiply the time in years times 360 or 365.

In calculating interest in the U.S. Rule from the last partial payment, the interest is subtracted from the adjusted balance.

Interest on $5,255 at 12% for 30 days (use ordinary interest) is:

A note dated Dec. 13 and due July 5 runs for exactly:

Interest is equal to:

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:

Bill Roe visits his local bank to see how long it will take for $1,000 to amount to $1,900 at a simple interest rate of 12 1/2%. Can you provide Bill with the solution to his problem in years?

The interest is the amount of money borrowed.

In the U.S. Rule, the partial payment first covers the interest and the remainder reduces the principal.

The federal government likes to use ordinary interest.

With interest of $1,832.00 and a principal of $16,000 for 206 days, using the ordinary interest method, the rate is:

Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning of June is (use 360 days):

The U.S. Rule:

Ordinary interest is never used by banks.

The time of a loan could be expressed in months, years, or days.

Which of the following is not true of the U.S. Rule?

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters