Exam 11: Simple Interest and Simple Discount

The amount the maker of a discounted note receives is called the maturity value.

When a business receives a promissory note as payment for goods or services and in turn sells the note to a bank it is called:

When solving a simple interest problem, the rate should be written as a decimal number.

The price paid for the use of money is called interest.

If you use ordinary time, February is assumed to have 30 days, except in a leap year.

With ordinary time, a loan dated June 12 and due in 150 days should be paid on:

If you assume each month has 30 days when calculating interest, time is considered:

The maturity value of a loan is:

The amount of money borrowed or invested is called the maturity value.

In a simple discounted note, the face value and the maturity value are the same amount.

Find the interest paid on a loan of $5410 at 7% annual simple interest for 2.4 years.

Find the exact interest on a loan of $6500 at 9% annually for 132 days.

Gordon borrows $17,500.00 for 120 days on March 17. The day the loan is due to be paid, using exact time, is:

Edgar borrowed $8200 on a 220-day note that required ordinary interest at 10.3%. Edgar paid $3000 on the note on day 150. How much interest did he save by making the partial payment?

Find the maturity value on a $28,498 face-value note for 182 days if the discount rate is 10%.

On a promissory note, the person borrowing the money is called the:

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

__________is the percent of interest charged on a loan.

Adjusted balance due at maturity refers to:

Find the ordinary interest on a loan of $850 at 11% annually made on February 10 and due May 31.