Question 1

Bruce Seem took out the same loan as Alice, but his terms were exact interest. What is the difference in interest, and what will Bruce pay back on January 14, 2014?

Accepted Answer

Difference in intere

Question 2

Simple interest usually represents a loan of:

Accepted Answer

A)  One month or less 
B)  One year or less 
C)  Two years or less 
D)  Six months or less 
E)  None of these 
A)  One month or less 
B)  One year or less 
C)  Two years or less 
D)  Six months or less 
E)  None of these

Question 3

Accepted Answer

The answer of  ...

Question 4

Interest is equal to:

Accepted Answer

A)  Principal * rate divided by time 
B)  Principal divided by rate * time 
C)  Principal * time 
D)  Principal * rate * time 
E)  None of these 
A)  Principal * rate divided by time 
B)  Principal divided by rate * time 
C)  Principal * time 
D)  Principal * rate * time 
E)  None of these

Question 5

18 months is the same as 1.5 years.

Accepted Answer

A) True 
 B)False

Question 6

The federal government likes to use ordinary interest.

Accepted Answer

A) True 
 B)False

Question 7

To convert time in days, it is necessary to multiply the time in years times 360 or 365.

Accepted Answer

A) True 
 B)False

Question 8

The number of days between Aug. 9 and Jan. 3 is:

Accepted Answer

A)  145 
B)  144 
C)  147 
D)  148 
E)  None of these 
A)  145 
B)  144 
C)  147 
D)  148 
E)  None of these

Question 9

The time of a loan could be expressed in months, years, or days.

Accepted Answer

A) True 
 B)False

Question 10

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

Accepted Answer

A)  Subtracted from adjusted balance 
B)  Added to beginning balance 
C)  Subtracted from beginning balance 
D)  Added to adjusted balance 
E)  None of these 
A)  Subtracted from adjusted balance 
B)  Added to beginning balance 
C)  Subtracted from beginning balance 
D)  Added to adjusted balance 
E)  None of these

Question 11

The U.S. Rule:

Accepted Answer

A)  Is used only by banks 
B)  Is never used by banks 
C)  Allows borrowers to receive interest credit 
D)  Is hardly used today 
E)  None of these 
A)  Is used only by banks 
B)  Is never used by banks 
C)  Allows borrowers to receive interest credit 
D)  Is hardly used today 
E)  None of these

Question 12

Interest of $1,632 with principal of $16,000 for 306 days (ordinary interest) results in a rate of:

Accepted Answer

A)  10% 
B)  12% 
C)  12 1/2% 
D)  13% 
E)  None of these 
A)  10% 
B)  12% 
C)  12 1/2% 
D)  13% 
E)  None of these

Question 13

Accepted Answer

A. $5,000 B. $30,000

Question 14

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Accepted Answer

A) True 
 B)False

Question 15

Interest = principal * rate.

Accepted Answer

A) True 
 B)False

Question 16

Joe Flynn visits his local bank to see how long it will take for $1,200 to amount to $2,100 at a simple interest rate of 7%. The time is (round time in years to nearest tenth):

Accepted Answer

A)  9.2 years 
B)  11.1 years 
C)  10.7 years 
D)  17.1 years 
E)  None of these 
A)  9.2 years 
B)  11.1 years 
C)  10.7 years 
D)  17.1 years 
E)  None of these

Question 17

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Accepted Answer

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

Question 18

Principal is equal to rate divided by interest times time.

Accepted Answer

A) True 
 B)False

Question 19

Interest on $5,255 at 12% for 30 days (use ordinary interest) is:

Accepted Answer

A)  $52.55 
B)  $55.25 
C)  $5.26 
D)  $5.25 
E)  None of these 
A)  $52.55 
B)  $55.25 
C)  $5.26 
D)  $5.25 
E)  None of these

Question 20

The interest is the amount of money borrowed.

Accepted Answer

A) True 
 B)False

Bruce Seem took out the same loan as Alice, but his terms were exact interest. What is the difference in interest, and what will Bruce pay back on January 14, 2014?

Simple interest usually represents a loan of:

Interest is equal to:

18 months is the same as 1.5 years.

The federal government likes to use ordinary interest.

To convert time in days, it is necessary to multiply the time in years times 360 or 365.

The number of days between Aug. 9 and Jan. 3 is:

The time of a loan could be expressed in months, years, or days.

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

The U.S. Rule:

Interest of $1,632 with principal of $16,000 for 306 days (ordinary interest) results in a rate of:

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Interest = principal * rate.

Joe Flynn visits his local bank to see how long it will take for $1,200 to amount to $2,100 at a simple interest rate of 7%. The time is (round time in years to nearest tenth):

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Principal is equal to rate divided by interest times time.

Interest on $5,255 at 12% for 30 days (use ordinary interest) is:

The interest is the amount of money borrowed.

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

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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

Bruce Seem took out the same loan as Alice, but his terms were exact interest. What is the difference in interest, and what will Bruce pay back on January 14, 2014?

Simple interest usually represents a loan of:

Interest is equal to:

18 months is the same as 1.5 years.

The federal government likes to use ordinary interest.

To convert time in days, it is necessary to multiply the time in years times 360 or 365.

The number of days between Aug. 9 and Jan. 3 is:

The time of a loan could be expressed in months, years, or days.

At maturity, using the U.S. Rule, the interest calculated from the last partial payment is:

The U.S. Rule:

Interest of $1,632 with principal of $16,000 for 306 days (ordinary interest) results in a rate of:

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Interest = principal * rate.

Joe Flynn visits his local bank to see how long it will take for $1,200 to amount to $2,100 at a simple interest rate of 7%. The time is (round time in years to nearest tenth):

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Principal is equal to rate divided by interest times time.

Interest on $5,255 at 12% for 30 days (use ordinary interest) is:

The interest is the amount of money borrowed.

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