Question 1

When making a partial payment before the maturity date, the U.S. Rule states:

Accepted Answer

A)  any partial loan payment is applied equally to principal and interest 
B)  any partial loan payment first reduces the adjusted principal 
C)  any partial loan payment first reduces the principal 
D)  any partial loan payment first covers any interest that has accumulated 
A)  any partial loan payment is applied equally to principal and interest 
B)  any partial loan payment first reduces the adjusted principal 
C)  any partial loan payment first reduces the principal 
D)  any partial loan payment first covers any interest that has accumulated

Question 2

The advantage when using ordinary interest belongs to the:

Accepted Answer

A)  investor 
B)  lender 
C)  both borrower and investor 
D)  borrower 
A)  investor 
B)  lender 
C)  both borrower and investor 
D)  borrower

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

You need to borrow $1500 to cover your school expenses for 10 months. After calling several places, you can choose between a money store charging 15% simple interest per year or your family who will charge you 10% per year. How much will you save by borrowing from your family?

Accepted Answer

A)  $62.50 
B)  $150.00 
C)  $312.50 
D)  $750.00 
A)  $62.50 
B)  $150.00 
C)  $312.50 
D)  $750.00

Question 5

After agreeing to be the payee for a promissory note as payment for the sale of goods, a business:

Accepted Answer

A)  may sell the note to a third party in exchange for cash 
B)  may discount the note to a third party 
C)  all apply in the case of a third-party discount note 
D)  receives the maturity value of the note if sold to another party, minus the third-party discount 
A)  may sell the note to a third party in exchange for cash 
B)  may discount the note to a third party 
C)  all apply in the case of a third-party discount note 
D)  receives the maturity value of the note if sold to another party, minus the third-party discount

Question 6

When determining ordinary interest, dividing by 360 or 365 provides the fractional daily interest rate.

Accepted Answer

A) True 
 B)False

Question 7

Find the maturity value on a $4765 face-value note for 273 days if the discount rate is 11%.

Accepted Answer

A)  $5155.60 
B)  $5158.47 
C)  $5168.08 
D)  $5162.48 
A)  $5155.60 
B)  $5158.47 
C)  $5168.08 
D)  $5162.48

Question 8

If a note is dated July 15, discounted on September 29, and is due on November 12, the discount period is________ days.

Accepted Answer

A)  120 
B)  44 
C)  76 
D)  74 
A)  120 
B)  44 
C)  76 
D)  74

Question 9

Dr. Bell wants to borrow $4100 for home improvements. He doesn't want to pay more than $215.25 in interest. Find the longest time for which the money may be borrowed if the interest rate is 7% per year. Round to the nearest month.

Accepted Answer

A)  7 months 
B)  12 months 
C)  8 months 
D)  9 months 
A)  7 months 
B)  12 months 
C)  8 months 
D)  9 months

Question 10

Maturity value is equal to principal minus interest.

Accepted Answer

A) True 
 B)False

Question 11

With exact time, in a non-leap year, the duration of a loan dated January 23 and due to be paid April 12 is 80 days.

Accepted Answer

A) True 
 B)False

Question 12

Find the maturity value on a $7480 face-value note for 226 days if the discount rate is 12%.

Accepted Answer

A)  $8043.49 
B)  $8051.43 
C)  $6916.51 
D)  $7535.58 
A)  $8043.49 
B)  $8051.43 
C)  $6916.51 
D)  $7535.58

Question 13

In a non-interest-bearing note, the maturity value of the note is the same dollar amount as the face value or principal.

Accepted Answer

A) True 
 B)False

Question 14

If you count the specific number of days in a month, it is called _________time.

Accepted Answer

A)  approximate 
B)  variable 
C)  exact 
D)  ordinary 
A)  approximate 
B)  variable 
C)  exact 
D)  ordinary

Question 15

A holder of a $19,200, 10%, 240-day note dated June 1 decides to sell the note at a discount. The note is sold on July 18 at a discount of 11%. Find the proceeds.

Accepted Answer

A)  $19,272.25 
B)  $19,265.99 
C)  $19,382.04 
D)  $19,036.36 
A)  $19,272.25 
B)  $19,265.99 
C)  $19,382.04 
D)  $19,036.36

Question 16

Find the maturity value of a loan of $13,942 after 8 months. The loan carries a simple interest rate of 11.9% per year.

Accepted Answer

A)  $15,048.07 
B)  $14,909.81 
C)  $15,186.32 
D)  $15,057.36 
A)  $15,048.07 
B)  $14,909.81 
C)  $15,186.32 
D)  $15,057.36

Question 17

How much interest will have to be paid on a loan of $50,967 for 23 months at a simple interest rate of 10.6% per year?

Accepted Answer

A)  $10,354.80 
B)  $10,441.81 
C)  $9904.59 
D)  $10,805.00 
A)  $10,354.80 
B)  $10,441.81 
C)  $9904.59 
D)  $10,805.00

Question 18

Find the exact interest on a loan of $7500 at 13% annually made on July 17 and due November 30.

Accepted Answer

A)  $363.29 
B)  $355.27 
C)  $368.33 
D)  $360.21 
A)  $363.29 
B)  $355.27 
C)  $368.33 
D)  $360.21

Question 19

Find the ordinary interest on a loan of $350 at 12% annually made on July 9 and due October 31.

Accepted Answer

A)  $13.30 
B)  $13.18 
C)  $42.00 
D)  $363.30 
A)  $13.30 
B)  $13.18 
C)  $42.00 
D)  $363.30

Question 20

Find the exact interest on a loan of $47,000 at 9% annually made on February 21 and due June 30.

Accepted Answer

A)  $1494.99 
B)  $1529.75 
C)  $1515.75 
D)  $1551.00 
A)  $1494.99 
B)  $1529.75 
C)  $1515.75 
D)  $1551.00

When making a partial payment before the maturity date, the U.S. Rule states:

The advantage when using ordinary interest belongs to the:

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

You need to borrow $1500 to cover your school expenses for 10 months. After calling several places, you can choose between a money store charging 15% simple interest per year or your family who will charge you 10% per year. How much will you save by borrowing from your family?

After agreeing to be the payee for a promissory note as payment for the sale of goods, a business:

When determining ordinary interest, dividing by 360 or 365 provides the fractional daily interest rate.

Find the maturity value on a $4765 face-value note for 273 days if the discount rate is 11%.

If a note is dated July 15, discounted on September 29, and is due on November 12, the discount period is________ days.

Dr. Bell wants to borrow $4100 for home improvements. He doesn't want to pay more than $215.25 in interest. Find the longest time for which the money may be borrowed if the interest rate is 7% per year. Round to the nearest month.

Maturity value is equal to principal minus interest.

With exact time, in a non-leap year, the duration of a loan dated January 23 and due to be paid April 12 is 80 days.

Find the maturity value on a $7480 face-value note for 226 days if the discount rate is 12%.

In a non-interest-bearing note, the maturity value of the note is the same dollar amount as the face value or principal.

If you count the specific number of days in a month, it is called _________time.

A holder of a $19,200, 10%, 240-day note dated June 1 decides to sell the note at a discount. The note is sold on July 18 at a discount of 11%. Find the proceeds.

Find the maturity value of a loan of $13,942 after 8 months. The loan carries a simple interest rate of 11.9% per year.

How much interest will have to be paid on a loan of $50,967 for 23 months at a simple interest rate of 10.6% per year?

Find the exact interest on a loan of $7500 at 13% annually made on July 17 and due November 30.

Find the ordinary interest on a loan of $350 at 12% annually made on July 9 and due October 31.

Find the exact interest on a loan of $47,000 at 9% annually made on February 21 and due June 30.

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

When making a partial payment before the maturity date, the U.S. Rule states:

The advantage when using ordinary interest belongs to the:

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

You need to borrow $1500 to cover your school expenses for 10 months. After calling several places, you can choose between a money store charging 15% simple interest per year or your family who will charge you 10% per year. How much will you save by borrowing from your family?

After agreeing to be the payee for a promissory note as payment for the sale of goods, a business:

When determining ordinary interest, dividing by 360 or 365 provides the fractional daily interest rate.

Find the maturity value on a $4765 face-value note for 273 days if the discount rate is 11%.

If a note is dated July 15, discounted on September 29, and is due on November 12, the discount period is________ days.

Dr. Bell wants to borrow $4100 for home improvements. He doesn't want to pay more than $215.25 in interest. Find the longest time for which the money may be borrowed if the interest rate is 7% per year. Round to the nearest month.

Maturity value is equal to principal minus interest.

With exact time, in a non-leap year, the duration of a loan dated January 23 and due to be paid April 12 is 80 days.

Find the maturity value on a $7480 face-value note for 226 days if the discount rate is 12%.

In a non-interest-bearing note, the maturity value of the note is the same dollar amount as the face value or principal.

If you count the specific number of days in a month, it is called _________time.

A holder of a $19,200, 10%, 240-day note dated June 1 decides to sell the note at a discount. The note is sold on July 18 at a discount of 11%. Find the proceeds.

Find the maturity value of a loan of $13,942 after 8 months. The loan carries a simple interest rate of 11.9% per year.

How much interest will have to be paid on a loan of $50,967 for 23 months at a simple interest rate of 10.6% per year?

Find the exact interest on a loan of $7500 at 13% annually made on July 17 and due November 30.

Find the ordinary interest on a loan of $350 at 12% annually made on July 9 and due October 31.

Find the exact interest on a loan of $47,000 at 9% annually made on February 21 and due June 30.

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