Exam 8: Simple Interest Applications

You purchase a 182-day treasury bill for $240,000 at a rate of 3.546%. What did you sell it for 111 days before maturity if the new interest rate is 3.778%?

Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. Compute the present value on the date of issue of a non-interest-bearing, worth $850 000, three-month promissory note dated September 1, 2013 (plus 3 days of grace), if money is worth 12.5% in Oman.

Compute the present value of a 150-day non-interest-bearing promissory note for $5000 dated June 15, if the note was sold on August 21 and money is worth 6.5%.

Determine the present value on January 17, 2014 of a non-interest-bearing promissory six-month note for $17 000.00 dated October 15, 2013 if money is worth 4.15%.

Sean purchased a 182-day, $10 000 T-bill on its issue date for $9754.25. What was the original yield of the T-bill?

A promissory note has a face value of $1725 and it has a date of issue of October 1 this year. The term is for 4 months. The rate of interest is 6.13%. What is the legal due date of the promissory note?

Find the maturity date and the maturity value of a $1415.00, 5.25%, 220-day note dated February 25, 2012.

A promissory note has a face value of $5000 and it carries an interest rate of 5% for a period of 6 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 4%?

A six-month promissory note dated November 8, 2013 is made at 6% for $2900.00. What is the present value of the note thirty-eight days later if money is worth 7.2%?

A 7-month note dated May 1, 2014 is made at 3.75% for $3705. What is the present value of the note on September 4, 2014, if money is worth 6.87%?

Farah shopped at Lowes using line of credit and purchased merchandise worth $963.52. She is budgeting a planning to pay $100 every month back to her bank. The bank charges 7% p.a. on unpaid balances. Construct a complete repayment schedule for Farah. What is the total interest paid to the bank?

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 $10 or 2% of the outstanding balance. She intends to pay the balance in full on the 29th of July. How much must she pay?

On July 12, 2013 a 140-day note promissory note for $9 175 with interest at 5.75% was issued. Find the proceeds of the note on September 30, 2013 if money is worth 7%.

You borrowed $4600 at 9.1% per annum calculated on the unpaid monthly balance and agree to repay the principal together with interest in monthly payments of $1050 each. Construct a complete repayment schedule.

PC Financial approved a $75 000 line of credit on a demand basis to Little Blessings day care to finance equipment. Interest at the rate of prime plus 1% is charged to the account at the bank on the 15th of each month. The initial advance was $45 000 on July 15, when the prime rate stood at 3%. There were further advances of $8000 on August 20 and $10 000 on September 10. Payments of $15 000 each were applied against the principal on October 1 and November 1. What was the total interest accumulated on the loan for the period July 15 to November 15?

A 4-month, 7.26% percent promissory note dated June 10, 2013 has a maturity value of $6231.34. What is the face value of the note?

Determine the maturity value of a 120-day note for $2260.00 dated May 9 and bearing interest at 5.66%.

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 (3%)plus 1%. She repays her loan in 168 days. 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?

Average rate of return or yield on 180-day Government of Canada treasury bills sold on June 18, 2013 was 1.04%. The client sold the $50 000 T-bill after 39 days. What rate of return (per annum)did the client realize while holding the T-bill, if the short term interest for this maturity had risen to 1.13% by the date of sale?

A promissory note has a face value of $6000 and it has a date of issue of June 1 this year. The term is for 6 months. The rate of interest is 8.00%. What is the maturity value of the note?