Question 1

Use exact interest:

Accepted Answer

A. 66 days; B. $520.77; C. $24,520.77

Question 2

Round all answers to the nearest cent. Woody's Café's real estate tax of $1,110.85 was due on November 1, 2014. Due to financial problems, Woody was unable to pay his café's real estate tax bill until January 15, 2015. The penalty for late payment is 8 1/4% ordinary interest. (A) What is the penalty Woody will have to pay and (B) what will Woody pay on January 15?

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(Short Answer)

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Question 2

Correct Answer:

Verified

A. $19.09
B. $1,129.94

Accepted Answer

A. $19.09 
B. $1,129.94

Question 3

Jim Murphy borrowed $30,000 on a 120-day 14% note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is:

Accepted Answer

A)  $25,000 
B)  $28,891.67 
C)  $1,108.33 
D)  $26,108.33 
E)  None of these 
A)  $25,000 
B)  $28,891.67 
C)  $1,108.33 
D)  $26,108.33 
E)  None of these D

Question 4

Use exact interest:

Accepted Answer

A. 121 day

Question 5

Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:

Accepted Answer

A)  $1,428,005.70 
B)  $4,128,005.70 
C)  $1,428,05.70 
D)  $1,420.70 
E)  None of these 
A)  $1,428,005.70 
B)  $4,128,005.70 
C)  $1,428,05.70 
D)  $1,420.70 
E)  None of these

Question 6

Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

Accepted Answer

A)  $188.22 
B)  $187.18 
C)  $189.78 
D)  $187.17 
E)  None of these 
A)  $188.22 
B)  $187.18 
C)  $189.78 
D)  $187.17 
E)  None of these

Question 7

Solve:

Accepted Answer

The answer of Solve:  ...

Question 8

The U.S. Rule is seldom used in today's workplace.

Accepted Answer

A) True 
 B)False

Question 9

July 10 to March 15 is 119 days.

Accepted Answer

A) True 
 B)False

Question 10

Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.

Accepted Answer

The answer of Round all answers to the nearest cent....

Question 11

The U.S. Rule is a method that allows the borrower to receive proper interest credit when a debt is paid off in more than one payment before the maturity date.

Accepted Answer

A) True 
 B)False

Question 12

Solve:

Accepted Answer

The answer of Solve:  ...

Question 13

Ordinary interest is required by all banks.

Accepted Answer

A) True 
 B)False

Question 14

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

Accepted Answer

A)  $503.00 
B)  $2,500.00 
C)  $546.67 
D)  $105.33 
E)  None of these 
A)  $503.00 
B)  $2,500.00 
C)  $546.67 
D)  $105.33 
E)  None of these

Question 15

The amount a bank charges for the use of money is called interest.

Accepted Answer

A) True 
 B)False

Question 16

Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Accepted Answer

A)  $1,008.89 
B)  $48,008.89 
C)  $47,444.44 
D)  $44,744.44 
E)  None of these 
A)  $1,008.89 
B)  $48,008.89 
C)  $47,444.44 
D)  $44,744.44 
E)  None of these

Question 17

Jane Smith took out a loan for $40,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 12%. What is the total amount Jane has to pay back at the end of the loan?

Accepted Answer

$78,400
$40,000 * .1

Question 18

Joyce took out a loan for $21,900 at 12% on March 18, 2013, which will be due on January 9, 2014. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

Accepted Answer

A)  $2,167.10 
B)  $24,068.10 
C)  $24,038.40 
D)  $2,138.40 
E)  None of these 
A)  $2,167.10 
B)  $24,068.10 
C)  $24,038.40 
D)  $2,138.40 
E)  None of these

Question 19

Round all answers to the nearest cent. Amy Koy met Pat Quin on Sept. 8 at Queen Bank. After talking with Pat, Amy decided she would like to consider a $9,000 loan at 10 1/2% to be repaid on Feb. 17 of the next year on exact interest. Calculate the amount that Amy would pay at maturity under this assumption.

Accepted Answer

The answer of Round all answers to the nearest cent....

Question 20

Alice took out a loan for $19,500 at 13 1/2% on March 4, 2013, which will be due on
January 14, 2014. Using ordinary interest, what will be the interest cost and what amount will Alice pay back on January 14, 2014?

Accepted Answer

The answer of Alice took out a loan for $19,500...

Use exact interest:

Jim Murphy borrowed $30,000 on a 120-day 14% note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is:

Use exact interest:

Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:

Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

Solve:

The U.S. Rule is seldom used in today's workplace.

July 10 to March 15 is 119 days.

Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.

The U.S. Rule is a method that allows the borrower to receive proper interest credit when a debt is paid off in more than one payment before the maturity date.

Solve:

Ordinary interest is required by all banks.

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

The amount a bank charges for the use of money is called interest.

Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Jane Smith took out a loan for $40,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 12%. What is the total amount Jane has to pay back at the end of the loan?

Joyce took out a loan for $21,900 at 12% on March 18, 2013, which will be due on January 9, 2014. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

Alice took out a loan for $19,500 at 13 1/2% on March 4, 2013, which will be due on January 14, 2014. Using ordinary interest, what will be the interest cost and what amount will Alice pay back on January 14, 2014?

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters

Exam 16: Simple Interest

Use exact interest:

Jim Murphy borrowed $30,000 on a 120-day 14% note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is:

Use exact interest:

Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:

Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back how much interest on January 20?

Solve:

The U.S. Rule is seldom used in today's workplace.

July 10 to March 15 is 119 days.

Round all answers to the nearest cent. Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. DO NOT round the denominator in your calculation.

The U.S. Rule is a method that allows the borrower to receive proper interest credit when a debt is paid off in more than one payment before the maturity date.

Solve:

Ordinary interest is required by all banks.

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

The amount a bank charges for the use of money is called interest.

Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Jane Smith took out a loan for $40,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 12%. What is the total amount Jane has to pay back at the end of the loan?

Joyce took out a loan for $21,900 at 12% on March 18, 2013, which will be due on January 9, 2014. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:

Alice took out a loan for $19,500 at 13 1/2% on March 4, 2013, which will be due on January 14, 2014. Using ordinary interest, what will be the interest cost and what amount will Alice pay back on January 14, 2014?

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters