Exam 10: Simple Interest and Promissory Notes

Shoree has taken out a loan of $3,000 at $9 \frac { 1 } { 2 } \%$ interest, for 60 months. Find the maturity value on Shoree's loan using the formula MV = $P$ (1 + RT).

Using the formula Interest - Principal x Rate x Time, ​If all elements are known except for the principal, the formula should be written as:​ ​ $\text { principal } = \frac { \text { interest } } { \text { rate } x \text { time } }$

Israel signed a simple discount promissory note for $15,000. The discount rate is 7.5%, and the term of the note is 120 days. What are Israel's proceeds on the loan?

​Interest calculated solely on the principal amount borrowed or invested is known as compound interest.

What is the effective interest rate of a simple discount note for $2,700 at a bank discount rate of 12.25%, for 36 months? (Round to the nearest tenth percent)

Find the amount of interest on a loan of $10,500, at 9% interest, for 124 days using the exact interest method.

What is the time period of a loan for $7,500, at 6% exact interest, if the amount of interest is $98.63? (Round fraction to next higher day)

Abkar Hardware takes out a loan of $2,500, for 84 days. If the amount of interest is $63.29, use the exact interest method to find the rate. (Round to the nearest tenth percent)

The financial officer of Toys and Noise arranges a loan of $7,500, at 8.5% interest, for 33 months. Find the amount of simple interest. (Round to the nearest cent)

Barbara was charged 9.35% interest and paid $375.50 interest on a simple interest loan for 105 days from her local bank. How much did she borrow? Use ordinary interest. (Round to the nearest cent)

Suppose that you took out a loan at 12% interest for 200 days. If the amount of interest was $690.41, use the exact interest method to find the amount of principal you borrowed. (Round to the nearest whole dollar amount)

Innovative Engineering received a promissory note of $15,500 at 11% simple interest for 15 months from one of its customers. After 3 months, Union Bank discounted the note at a discount rate of 13%. Calculate the proceeds that Innovative Engineering will receive from the discounted note. (Round to the nearest cent)

Find the interest on the loan: Principal Rate Time Interest \ 12,560 11\% 1 years

What is the maturity date of a loan taken out on August 9, for 101 days?

If you sign a discount note for $4,200 at a bank discount rate of 9%, for 90 days, what is the effective interest rate? (Round to the nearest tenth percent)

Jes Pisano borrowed $4,800 for 4 years. The maturity value of the loan was $7,084.80. What was the rate of interest charged? (Round to the nearest tenth of a percent)

Norman was charged 14.75% interest and paid $375 interest on a simple interest loan for 65 days from his local bank. How much did he borrow? Use ordinary interest. (Round to the nearest cent)

If you sign a discount note for $2,500 at a bank discount rate of 7%, for 3 months, what is the effective interest rate? (Round to the nearest tenth percent)

On November 2, Paul Matthews signed a 120 day, $75,000 simple discount promissory note at the Northridge Savings Bank. The discount rate was $13 \frac { 1 } { 4 } \%$ ordinary interest. What proceeds will Paul receive on the note?

A loan has a due date of September 4. If it is made on June 9, for how many days is the loan?