Exam 8: Simple Interest Applications

Calculate the legal due date of a $10 000, 120-day note with interest at 4.56% dated March 31, 2012.

Bana received Scotiabank American Express (Amex)gold card, where the interest is charged at 18.9% per annum. The bill is issued on 16th of every month and is due on 4th of next month. She used her Amex card for the following transactions in the month of July: July 1 Purchased some fireworks for Canada Day for a total of $67.35 July 4 Across the US border, took a cash advance worth $124.79 Canadian July 10 Booked a return flight to Calgary for $587 July 15 Purchased some food at the airport for $12.97 The minimum payment due is greater of $20 or 2% of the outstanding balance on the billing day. She intends to pay the minimum amount on August 4 and pay the rest on August 11. How much must she pay on August 11?

The East Lake Karate Club arranged short-term financing of $41 500.00 on July 27 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $13 000.00 on September 25, $7500.00 on November 17, and the balance on December 20. Interest calculated on the daily balance and charged to the club's current account on the last day of each month, was at 8.5% per annum on July 27. The rate was changed to 8.75% effective September 1 and to 9.14% effective December 1. Determine the total interest cost.

Find the maturity value of a $473 note issued on October 4 at 8.5% for 190 days.

Caprice buys a painting on his credit card for $14 990. She pays her credit card in full 3 days after the grace period of 11 days using her secured line of credit, which charges her prime plus 1%. She repays her loan in 168 days. The prime rate is 2.5% on the day of repayment of credit card loan and increases to 3% 90 days after that day. If her credit card company charges her a rate of 28% after the grace period, what is the total amount of interest paid on the purchase of the painting?

What is the face value of a three-month promissory note dated July 30, 2013, with interest at 6.5 percent if its maturity

Raymond borrowed $3900.00 from Airdrie Regional Savings. The line of credit agreement provided for repayment of the loan in four equal monthly payments plus interest at 9.56% per annum calculated on the unpaid balance. Determine the total interest cost.

You take out a demand loan on February 17th, in a non-leap year, with a local financing company. The loan is for $4500 at an interest rate of 12.15%. The interest rate rises to 12.75% on March 18th and then goes down to 12.25% on April 29th. You make partial payments of $900 on March 2nd and $1700 on May 14th. The loan is demanded in full on June 21st. What is the size of the final payment?

Meher purchased a $100 000.00, 182-day T-bill on April 4, 2012. a)If the annual rate of return is 4.2%, calculate the purchase price. b)Calculate the selling price of the bill if it is sold on June 20, 2012 to yield 3.19%. c)Calculate the rate of interest realized.

You bought a $100 000 364-day T-bill. The T-bill was discounted at a rate of 5%. If you paid $99 900.00 for the T-bill, how many days before maturity did you buy it?

Saint Mary's Corporation issued a 150-day non-interest bearing note for $25 300 to Carlos Services on June 15. On August 21, the note was sold to Bearing Collections at a price reflecting a discount rate of 12.5%. What were the proceeds of the note?

Find the present value on June 1, 2014 of a non-interest-bearing note for $950 issued February 2, 2014, for 210 days if money is worth 8.31%.

For the following promissory note, determine the amount of interest due at maturity.

Marty took a $5000 loan from a financial institute at a rate of 6%, which should be repaid in two equal installments made every 4 months. What should be the value of the installment?

Calculate the legal due date of a $600.00, 120 day note with interest at 5% dated March 2, 2014.

A promissory note has a face value of $4500 and it carries an interest rate of 8.73% for a period of 4 months (including the period of grace). It is sold 3 months before the legal due date.What is the present value of the note on the date of sale if money is worth 8.2%?

Government of Manitoba 364-day T-bills with a face value of $2 000 000 were purchased on April 17 for $1 945 970. The T-bills were sold on May 25 for $1 946 340. a)What was the market yield rate on April 17? b)What was the yield rate on May 25? c)What was the rate of return realized?

Find the maturity value of a $1190, 7.275%, 120-day note dated February 5, 2013.

Find the present value of a non-interest-bearing seven-month promissory note for $1800 dated August 27, 2012, on December 4, 2012, if money is then worth 8.375%.

You bought $150 000 in 364-day T-bills. The T-bills were discounted at a rate of 4.432%. If you paid $148 811.24 for the T-bills, how many days before maturity did you buy it?