Question 1

If Inez is charged an interest of $42.95 on a loan of $950.00 for seven months, calculate the rate of interest charged on the loan.

Accepted Answer

I = 42.95; P = 950; t =   r =   = 0.0775 = 7.75%

Question 2

Calculate the amount of interest that will be charged on $7000.00 borrowed for five months at 5.5%.

Accepted Answer

P = 7000; r = 0.055; t =   I = 7000(0.055)   = $160.42

Question 3

Debt payments of $1170.00 due two months ago and $1243.00 due today respectively are to be repaid by a payment of $1505.00 in one month and the balance in four months. If money is worth 8.4% p.a. and the agreed focal date is four months from now, what is the size of the final payment?

Accepted Answer

Let the size of the final payment be $x.
At the agreed focal date (4 months from now):
1170   + 1243   = 1505   + x
1219.14 + 1277.80 = 1536.61 + x
960.33 = x
The size of the final payment is $960.33.

Question 4

Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at 9.0%.

Accepted Answer

P = 9000; r = 0.09;

Question 5

You have $5000 invested in a 30-day savings certificate at an interest rate of 1.00%. How much money will you have when the certificate matures?

Accepted Answer

A) $5004.11 
B) $5040.11 
C) $5400.11 
D) $4.11 
E) $4500.11 
A) $5004.11 
B) $5040.11 
C) $5400.11 
D) $4.11 
E) $4500.11

Question 6

What sum of money will accumulate to $539.04 in 97 days at 11.4%?

Accepted Answer

S = 539.04; r = 0.11

Question 7

Misra purchases an airplane ticket to Calgary today on the airline's early bird sale for $559, instead of buying it for $599 four months from now. Had he not bought the ticket today, he would have invested the money in bonds yielding 9% return. What is his true savings?

Accepted Answer

Future value from bond = S = P

Question 8

Calculate the amount of interest if $3000.00 is invested at 6.25% from November 30, 2014 to May 15, 2015.

Accepted Answer

A) $843.75 
B) $86.82 
C) $85.27 
D) $70.31 
E) $70.75 
A) $843.75 
B) $86.82 
C) $85.27 
D) $70.31 
E) $70.75

Question 9

Principal of $259 000 on a house is mortgaged at a rate of 3.7% amortized over a period of 25 years resulting into a total interest of $137 178.49. The bank also offers simple interest for the customers, who do not want to pay compound interest. If bank wishes to earn the same amount of interest over the period of 25 years, what rate will the bank charge to its customers, if the loan is paid in equal annual installments?

Accepted Answer

Principal to be paid every yea

Question 10

If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18 000?

Accepted Answer

A) $600 000 
B) $120 000 
C) $1 200 000 
D) $270 
E) $540 
A) $600 000 
B) $120 000 
C) $1 200 000 
D) $270 
E) $540

Question 11

The simple interest rate being charged on a $10 000 is 0.5% per month. What is the total amount paid, if the entire loan is paid in 9 months?

Accepted Answer

P = $10,000
r = 0.5%

Question 12

To buy a house, Noah borrowed $24 710 from the bank. If interest was charged on the loan at a 0.84% simple interest rate p.a. how much interest would Noah have to pay after 145 days?

Accepted Answer

P = $24710; r = 0.84

Question 13

In how many months will $5000 grow to $6000 at 9.5% p.a.?

Accepted Answer

Interest: I = 6000.00 - 5000.0

Question 14

Determine the deposit that must be made to earn $85 in 7 months at 10.5%.

Accepted Answer

I = $85; r

Question 15

You currently owe $1400 today and $2317 in 195 days at a rate of interest of 7%. What is the single equivalent payment 150 days from today?

Accepted Answer

A) $2297.18 
B) $2297.81 
C) $2279.18 
D) $2279.81 
E) $3737.45 
A) $2297.18 
B) $2297.81 
C) $2279.18 
D) $2279.81 
E) $3737.45

Question 16

Debt payments of $1925.00 due today, $510.00 due in 87 days, and $674.00 due in 337 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth 8.65% p.a. and the agreed focal date is 115 days from now?

Accepted Answer

Let the single payme

Question 17

What principal will have a future value of $7325 at a 1.1% rate in 350 days?

Accepted Answer

S = 7325; r = 1.1% =

Question 18

Louis took out a loan to pay off his new car, and four months later, has to pay back $8752. This figure also includes a 0.93% interest rate. How much did Louis originally borrow?

Accepted Answer

S = 8752; r = 0.93%

Question 19

Determine the date represented by 100 days after March 1, 2012.

Accepted Answer

DT1 is March 1, 2012

Question 20

The exact number of days between January 5 and March 17 during the next leap year is?

Accepted Answer

A) 72 days 
B) 74 days 
C) 73 days 
D) 71 days 
E) 75 days 
A) 72 days 
B) 74 days 
C) 73 days 
D) 71 days 
E) 75 days

If Inez is charged an interest of $42.95 on a loan of $950.00 for seven months, calculate the rate of interest charged on the loan.

Calculate the amount of interest that will be charged on $7000.00 borrowed for five months at 5.5%.

Debt payments of $1170.00 due two months ago and $1243.00 due today respectively are to be repaid by a payment of $1505.00 in one month and the balance in four months. If money is worth 8.4% p.a. and the agreed focal date is four months from now, what is the size of the final payment?

Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at 9.0%.

You have $5000 invested in a 30-day savings certificate at an interest rate of 1.00%. How much money will you have when the certificate matures?

What sum of money will accumulate to $539.04 in 97 days at 11.4%?

Misra purchases an airplane ticket to Calgary today on the airline's early bird sale for $559, instead of buying it for $599 four months from now. Had he not bought the ticket today, he would have invested the money in bonds yielding 9% return. What is his true savings?

Calculate the amount of interest if $3000.00 is invested at 6.25% from November 30, 2014 to May 15, 2015.

If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18 000?

The simple interest rate being charged on a $10 000 is 0.5% per month. What is the total amount paid, if the entire loan is paid in 9 months?

To buy a house, Noah borrowed $24 710 from the bank. If interest was charged on the loan at a 0.84% simple interest rate p.a. how much interest would Noah have to pay after 145 days?

In how many months will $5000 grow to $6000 at 9.5% p.a.?

Determine the deposit that must be made to earn $85 in 7 months at 10.5%.

You currently owe $1400 today and $2317 in 195 days at a rate of interest of 7%. What is the single equivalent payment 150 days from today?

Debt payments of $1925.00 due today, $510.00 due in 87 days, and $674.00 due in 337 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth 8.65% p.a. and the agreed focal date is 115 days from now?

What principal will have a future value of $7325 at a 1.1% rate in 350 days?

Louis took out a loan to pay off his new car, and four months later, has to pay back $8752. This figure also includes a 0.93% interest rate. How much did Louis originally borrow?

Determine the date represented by 100 days after March 1, 2012.

The exact number of days between January 5 and March 17 during the next leap year is?

Review of Arithmetic

Review of Basic Algebra

Ratio, Proportion, and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, Cash Discounts, Markup, and Markdown

Simple Interest Applications

Compound Interest - Future Value and Present Value

Compound Interest - Further Topics

Ordinary Simple Annuities

Ordinary General Annuities

Annuities Due, Deferred Annuities, and Perpetuities

Amortization of Loans, Residential Mortgages, and Sinking Funds

Bond Valuation

Investment Decision Applications

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Exam 7: Simple Interest

If Inez is charged an interest of $42.95 on a loan of $950.00 for seven months, calculate the rate of interest charged on the loan.

Calculate the amount of interest that will be charged on $7000.00 borrowed for five months at 5.5%.

Debt payments of $1170.00 due two months ago and $1243.00 due today respectively are to be repaid by a payment of $1505.00 in one month and the balance in four months. If money is worth 8.4% p.a. and the agreed focal date is four months from now, what is the size of the final payment?

Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at 9.0%.

You have $5000 invested in a 30-day savings certificate at an interest rate of 1.00%. How much money will you have when the certificate matures?

What sum of money will accumulate to $539.04 in 97 days at 11.4%?

Misra purchases an airplane ticket to Calgary today on the airline's early bird sale for $559, instead of buying it for $599 four months from now. Had he not bought the ticket today, he would have invested the money in bonds yielding 9% return. What is his true savings?

Calculate the amount of interest if $3000.00 is invested at 6.25% from November 30, 2014 to May 15, 2015.

If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18 000?

The simple interest rate being charged on a $10 000 is 0.5% per month. What is the total amount paid, if the entire loan is paid in 9 months?

To buy a house, Noah borrowed $24 710 from the bank. If interest was charged on the loan at a 0.84% simple interest rate p.a. how much interest would Noah have to pay after 145 days?

In how many months will $5000 grow to $6000 at 9.5% p.a.?

Determine the deposit that must be made to earn $85 in 7 months at 10.5%.

You currently owe $1400 today and $2317 in 195 days at a rate of interest of 7%. What is the single equivalent payment 150 days from today?

Debt payments of $1925.00 due today, $510.00 due in 87 days, and $674.00 due in 337 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth 8.65% p.a. and the agreed focal date is 115 days from now?

What principal will have a future value of $7325 at a 1.1% rate in 350 days?

Louis took out a loan to pay off his new car, and four months later, has to pay back $8752. This figure also includes a 0.93% interest rate. How much did Louis originally borrow?

Determine the date represented by 100 days after March 1, 2012.

The exact number of days between January 5 and March 17 during the next leap year is?

Review of Arithmetic

Review of Basic Algebra

Ratio, Proportion, and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, Cash Discounts, Markup, and Markdown

Simple Interest Applications

Compound Interest - Future Value and Present Value

Compound Interest - Further Topics

Ordinary Simple Annuities

Ordinary General Annuities

Annuities Due, Deferred Annuities, and Perpetuities

Amortization of Loans, Residential Mortgages, and Sinking Funds

Bond Valuation

Investment Decision Applications

Filters