Question 1

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

Accepted Answer

A)  Subtracted from adjusted balance 
B)  Added to beginning balance 
C)  Subtracted from beginning balance 
D)  Added to adjusted balance 
E)  None of these 
A)  Subtracted from adjusted balance 
B)  Added to beginning balance 
C)  Subtracted from beginning balance 
D)  Added to adjusted balance 
E)  None of these

Question 2

Banks and other financial institutions sometimes calculate simple interest based on:

Accepted Answer

A)  Exact interest method 
B)  Using 30 days for each month 
C)  Using 366 days in the year 
D)  Banker's rule, ordinary interest 
E)  None of these 
A)  Exact interest method 
B)  Using 30 days for each month 
C)  Using 366 days in the year 
D)  Banker's rule, ordinary interest 
E)  None of these

Question 3

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

Accepted Answer

A)  $503.00 
B)  $2,500.00 
C)  $546.67 
D)  $105.33 
E)  None of these 
A)  $503.00 
B)  $2,500.00 
C)  $546.67 
D)  $105.33 
E)  None of these

Question 4

Simple interest loans are usually more than one year.

Accepted Answer

A) True 
 B)False

Question 5

Solve:

Accepted Answer

The answer of Solve:
  ...

Question 6

Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.

Accepted Answer

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

Question 7

The number of days between Aug. 9 and Jan. 3 is:

Accepted Answer

A)  145 
B)  144 
C)  147 
D)  148 
E)  None of these 
A)  145 
B)  144 
C)  147 
D)  148 
E)  None of these

Question 8

Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2016. Using exact interest, the amount of Janet's interest cost is:

Accepted Answer

A)  $5,018.44 
B)  $2,561.44 
C)  $5,261.44 
D)  $5,216.44 
E)  None of these 
A)  $5,018.44 
B)  $2,561.44 
C)  $5,261.44 
D)  $5,216.44 
E)  None of these

Question 9

The exact interest method represents time as the exact number of days divided by 365.

Accepted Answer

A) True 
 B)False

Question 10

Round to nearest cent or hundredth percent as needed:

Accepted Answer

The answer of Round to nearest cent or hundredth percent...

Question 11

July 10 to March 15 is 119 days.

Accepted Answer

A) True 
 B)False

Question 12

A note dated August 18 and due on March 9 runs for exactly:

Accepted Answer

A)  230 days 
B)  227 days 
C)  272 days 
D)  203 days 
E)  None of these 
A)  230 days 
B)  227 days 
C)  272 days 
D)  203 days 
E)  None of these

Question 13

Jill Ley took out a loan for $60,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is:

Accepted Answer

A)  $88,008 
B)  $80,800 
C)  $88,800 
D)  $28,800 
E)  None of these 
A)  $88,008 
B)  $80,800 
C)  $88,800 
D)  $28,800 
E)  None of these

Question 14

Molly Joy owns her own car. Her June monthly interest was $205. The rate is 13 1/2%. Find out what Joy's principal balance is at the beginning of June. Use 360 days. (Do not round denominator in calculation.)

Accepted Answer

The answer of Molly Joy owns her own car. Her...

Question 15

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Accepted Answer

A) True 
 B)False

Question 16

Federal Reserve banks as well as the federal government like to calculate simple interest based on:

Accepted Answer

A)  Exact interest, ordinary interest 
B)  Using 30 days in each month 
C)  Using 31 days in each month 
D)  Exact interest 
E)  None of these 
A)  Exact interest, ordinary interest 
B)  Using 30 days in each month 
C)  Using 31 days in each month 
D)  Exact interest 
E)  None of these

Question 17

The amount a bank charges for the use of money is called interest.

Accepted Answer

A) True 
 B)False

Question 18

Interest is the cost of borrowing.

Accepted Answer

A) True 
 B)False

Question 19

Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Accepted Answer

A)  $1,008.89 
B)  $48,008.89 
C)  $47,444.44 
D)  $44,744.44 
E)  None of these 
A)  $1,008.89 
B)  $48,008.89 
C)  $47,444.44 
D)  $44,744.44 
E)  None of these

Question 20

Abby borrowed $3,000 at 12 3/4% on Sept. 10. The loan is due on Jan. 29. Assuming the loan is based on ordinary interest, how much will Abby pay on Jan. 29?

Accepted Answer

The answer of Abby borrowed $3,000 at 12 3/4% on...

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

Banks and other financial institutions sometimes calculate simple interest based on:

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

Simple interest loans are usually more than one year.

Solve:

Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.

The number of days between Aug. 9 and Jan. 3 is:

Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2016. Using exact interest, the amount of Janet's interest cost is:

The exact interest method represents time as the exact number of days divided by 365.

Round to nearest cent or hundredth percent as needed:

July 10 to March 15 is 119 days.

A note dated August 18 and due on March 9 runs for exactly:

Jill Ley took out a loan for $60,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is:

Molly Joy owns her own car. Her June monthly interest was $205. The rate is 13 1/2%. Find out what Joy's principal balance is at the beginning of June. Use 360 days. (Do not round denominator in calculation.)

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Federal Reserve banks as well as the federal government like to calculate simple interest based on:

The amount a bank charges for the use of money is called interest.

Interest is the cost of borrowing.

Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Abby borrowed $3,000 at 12 3/4% on Sept. 10. The loan is due on Jan. 29. Assuming the loan is based on ordinary interest, how much will Abby pay on Jan. 29?

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

Exam 10: Simple Interest

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

Banks and other financial institutions sometimes calculate simple interest based on:

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

Simple interest loans are usually more than one year.

Solve:

Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.

The number of days between Aug. 9 and Jan. 3 is:

Janet took out a loan of $50,000 from Bank of America at 8% on March 19, 2015, which is due on July 8, 2016. Using exact interest, the amount of Janet's interest cost is:

The exact interest method represents time as the exact number of days divided by 365.

Round to nearest cent or hundredth percent as needed:

July 10 to March 15 is 119 days.

A note dated August 18 and due on March 9 runs for exactly:

Jill Ley took out a loan for $60,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is:

Molly Joy owns her own car. Her June monthly interest was $205. The rate is 13 1/2%. Find out what Joy's principal balance is at the beginning of June. Use 360 days. (Do not round denominator in calculation.)

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Federal Reserve banks as well as the federal government like to calculate simple interest based on:

The amount a bank charges for the use of money is called interest.

Interest is the cost of borrowing.

Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Abby borrowed $3,000 at 12 3/4% on Sept. 10. The loan is due on Jan. 29. Assuming the loan is based on ordinary interest, how much will Abby pay on Jan. 29?

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