Question 1

If you borrow money from a bank and the bank collects its fee at the time the loan is made, the fee is called a:

Accepted Answer

A)  bank discount 
B)  maturity value 
C)  rate 
D)  term 
A)  bank discount 
B)  maturity value 
C)  rate 
D)  term

Question 2

Ordinary interest using the exact time method is sometimes called the Banker's Rule.

Accepted Answer

A) True 
 B)False

Question 3

In a promissory note, the person borrowing the money is called the maker.

Accepted Answer

A) True 
 B)False

Question 4

When a business sells a note to a bank, the discount is calculated on the maturity value.

Accepted Answer

A) True 
 B)False

Question 5

The formula to find the rate is interest divided by (principal times time).

Accepted Answer

A) True 
 B)False

Question 6

Find the due date for a loan made on September 14 for 90 days.

Accepted Answer

A)  January 15 
B)  December 15 
C)  December 13 
D)  December 14 
A)  January 15 
B)  December 15 
C)  December 13 
D)  December 14

Question 7

The lowest rate of interest charged by banks for short-term loans to their most creditworthy customers is known as the:

Accepted Answer

A)  all of these are appropriate references 
B)  reference rate 
C)  base lending rate 
D)  prime interest rate 
A)  all of these are appropriate references 
B)  reference rate 
C)  base lending rate 
D)  prime interest rate

Question 8

Jane borrowed $66,490 over 1.8 years. The simple interest has a rate of 8% pear year. What is the maturity value of the loan?

Accepted Answer

A)  $76,064.56 
B)  $71,529.24 
C)  $81,383.76 
D)  $75,532.64 
A)  $76,064.56 
B)  $71,529.24 
C)  $81,383.76 
D)  $75,532.64

Question 9

The simple interest formula is:

Accepted Answer

A)  P = IRT 
B)  R = PIT 
C)  I = PRT 
D)  T = PIR 
A)  P = IRT 
B)  R = PIT 
C)  I = PRT 
D)  T = PIR

Question 10

The number of days, months, or years for which money is borrowed is known as:

Accepted Answer

A)  rate 
B)  time 
C)  principal 
D)  discount 
A)  rate 
B)  time 
C)  principal 
D)  discount

Question 11

Tech Support Associates accepts a $5480, 8%, 210-day note for service equipment. The note is dated Sep 5. On Oct 21 the firm discounts the note at a bank, at a 10% discount rate. Find the proceeds.

Accepted Answer

A)  $5420.97 
B)  $5472.85 
C)  $5474.44 
D)  $5526.70 
A)  $5420.97 
B)  $5472.85 
C)  $5474.44 
D)  $5526.70

Question 12

A promissory note is a legal document whereby the signer promises to repay a loan.

Accepted Answer

A) True 
 B)False

Question 13

Find the exact interest on a loan of $1100 at 8% annually for 155 days.

Accepted Answer

A)  $3.79 
B)  $37.37 
C)  $37.89 
D)  $3.74 
A)  $3.79 
B)  $37.37 
C)  $37.89 
D)  $3.74

Question 14

Using ordinary time, a loan that starts on May 15 and is due to be paid August 15 would have a total duration of 92 days.

Accepted Answer

A) True 
 B)False

Question 15

The number of days a bank holds a discounted note is called the:

Accepted Answer

A)  term 
B)  discount period 
C)  time 
D)  none of these 
A)  term 
B)  discount period 
C)  time 
D)  none of these

Question 16

The simple interest formula is PI = RT.

Accepted Answer

A) True 
 B)False

Question 17

Find the total amount of money (maturity value) that the borrower will pay back on a loan of $3429 at 14% annual simple interest for 2.8 years.

Accepted Answer

A)  $4136.46 
B)  $4725.16 
C)  $5253.23 
D)  $4773.17 
A)  $4136.46 
B)  $4725.16 
C)  $5253.23 
D)  $4773.17

Question 18

Georgia agrees to lend money to Matt at a special interest rate of 9.9% per year, on the condition that he borrow enough that he would pay her $573 in interest over a 9 month period. What was the minimum amount Matt could borrow?

Accepted Answer

A)  $8681.82 
B)  $7652.86 
C)  $6945.45 
D)  $7717.17 
A)  $8681.82 
B)  $7652.86 
C)  $6945.45 
D)  $7717.17

Question 19

Find the maturity value of a loan of $49,583 after 18 months. The loan carries a simple interest rate of 8.3% per year.

Accepted Answer

A)  $55,413.13 
B)  $55,807.96 
C)  $55,756.08 
D)  $56,099.03 
A)  $55,413.13 
B)  $55,807.96 
C)  $55,756.08 
D)  $56,099.03

Question 20

Convert to years, expressed in decimal form to the nearest hundredth when necessary.
-21 month?

Accepted Answer

A)  252 years 
B)  2.1 years 
C)  1.91 years 
D)  1.75 years 
A)  252 years 
B)  2.1 years 
C)  1.91 years 
D)  1.75 years

If you borrow money from a bank and the bank collects its fee at the time the loan is made, the fee is called a:

Ordinary interest using the exact time method is sometimes called the Banker's Rule.

In a promissory note, the person borrowing the money is called the maker.

When a business sells a note to a bank, the discount is calculated on the maturity value.

The formula to find the rate is interest divided by (principal times time).

Find the due date for a loan made on September 14 for 90 days.

The lowest rate of interest charged by banks for short-term loans to their most creditworthy customers is known as the:

Jane borrowed $66,490 over 1.8 years. The simple interest has a rate of 8% pear year. What is the maturity value of the loan?

The simple interest formula is:

The number of days, months, or years for which money is borrowed is known as:

Tech Support Associates accepts a $5480, 8%, 210-day note for service equipment. The note is dated Sep 5. On Oct 21 the firm discounts the note at a bank, at a 10% discount rate. Find the proceeds.

A promissory note is a legal document whereby the signer promises to repay a loan.

Find the exact interest on a loan of $1100 at 8% annually for 155 days.

Using ordinary time, a loan that starts on May 15 and is due to be paid August 15 would have a total duration of 92 days.

The number of days a bank holds a discounted note is called the:

The simple interest formula is PI = RT.

Find the total amount of money (maturity value) that the borrower will pay back on a loan of $3429 at 14% annual simple interest for 2.8 years.

Georgia agrees to lend money to Matt at a special interest rate of 9.9% per year, on the condition that he borrow enough that he would pay her $573 in interest over a 9 month period. What was the minimum amount Matt could borrow?

Find the maturity value of a loan of $49,583 after 18 months. The loan carries a simple interest rate of 8.3% per year.

Convert to years, expressed in decimal form to the nearest hundredth when necessary. -21 month?

Review of Whole Numbers and Integers

Review of Fractions

Decimals

Banking

Equations

Percents

Business Statistics

Trade and Cash Discounts

Markup and Markdown

Payroll

Consumer Credit

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Exam 11: Simple Interest and Simple Discount

If you borrow money from a bank and the bank collects its fee at the time the loan is made, the fee is called a:

Ordinary interest using the exact time method is sometimes called the Banker's Rule.

In a promissory note, the person borrowing the money is called the maker.

When a business sells a note to a bank, the discount is calculated on the maturity value.

The formula to find the rate is interest divided by (principal times time).

Find the due date for a loan made on September 14 for 90 days.

The lowest rate of interest charged by banks for short-term loans to their most creditworthy customers is known as the:

Jane borrowed $66,490 over 1.8 years. The simple interest has a rate of 8% pear year. What is the maturity value of the loan?

The simple interest formula is:

The number of days, months, or years for which money is borrowed is known as:

Tech Support Associates accepts a $5480, 8%, 210-day note for service equipment. The note is dated Sep 5. On Oct 21 the firm discounts the note at a bank, at a 10% discount rate. Find the proceeds.

A promissory note is a legal document whereby the signer promises to repay a loan.

Find the exact interest on a loan of $1100 at 8% annually for 155 days.

Using ordinary time, a loan that starts on May 15 and is due to be paid August 15 would have a total duration of 92 days.

The number of days a bank holds a discounted note is called the:

The simple interest formula is PI = RT.

Find the total amount of money (maturity value) that the borrower will pay back on a loan of $3429 at 14% annual simple interest for 2.8 years.

Georgia agrees to lend money to Matt at a special interest rate of 9.9% per year, on the condition that he borrow enough that he would pay her $573 in interest over a 9 month period. What was the minimum amount Matt could borrow?

Find the maturity value of a loan of $49,583 after 18 months. The loan carries a simple interest rate of 8.3% per year.

Convert to years, expressed in decimal form to the nearest hundredth when necessary. -21 month?

Review of Whole Numbers and Integers

Review of Fractions

Decimals

Banking

Equations

Percents

Business Statistics

Trade and Cash Discounts

Markup and Markdown

Payroll

Consumer Credit

Filters