Exam 8: Simple Interest Applications

Joan buys a snow blower on her credit card for $1499. She pays her credit card in full a day after the grace period of 21 days using her secured line of credit, which charges her prime (3.25%)plus 1%. She repays her loan in 15 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 snow blower?

Leon's advertised a "No payment, No interest" plan for one year on all their dining set. Hab bought a dining set for $4520 plus 13% HST and an administration fee of $99 on 14 May 2016. On the same day, Sally bought the same dining set, paid the amount in full, but convinced the general manager of the store to give her a discount based on Canada's inflation rate, which is translated into a money worth of 2%. What did Sally pay?

CIBC approved a $10 000 personal line of credit on a demand basis to Tara, who takes an advance of $2240 on 1st of every month to settle her monthly budget. She settles her loan when she receives her pay on 15th of every month. Interest at the rate of prime (3%)plus 2.75% is charged to the account at the bank on the 15th of each month. What is Tara's payment each month to settle the loan?

Calculate the maturity value of a 180-day note for $4000 dated August 18 if the rate of interest is 7.5%.

Leonard buys a painting on his credit card for $14 990. He pays his credit card in full within the grace period of 11 days using his secured line of credit, which charges him prime (3%)plus 1%. He repays his loan in 168 days. If his credit card company charges him a rate of 28% after the grace period, what is the total amount of interest paid on the purchase of the painting?

The owner of Easy Clips borrowed $8800.00 from Red Deer Community Credit Union on June 17. The loan was secured by a demand note with interest calculated on the daily balance and charged to the store's account on the 5th day of each month. The loan was repaid by payments of $2500.00 on July 25, $2300.00 on October 17, and $3500.00 on December 30. The rate of interest charged by the credit union was 6.5% on June 17. The rate was changed to 6.65% effective July 1 and to 6.95% effective November 1. Determine the total interest cost on the loan, up to and including Dec. 30.

Aslam borrowed $23 000 from Meridian Credit Union at 4% p.a. and agreed to repay the loan in monthly instalments of $3000 each, such payments to cover interest due and repayment of principal. Construct a complete repayment schedule.