Exam 10: Simple Interest and Promissory Notes

Using the ordinary interest method, find the amount of interest on a loan of $5,000 at $11 \frac { 1 } { 2 } \%$ interest, for 284 days.

State Bank made a loan at 12% interest for 360 days. If the amount of interest was $934.20, use the ordinary interest method to find the amount of principal borrowed. (Round to the nearest whole dollar)

On January 21, Janet Rogan borrowed $940 at $9 \frac { 1 } { 4 } \%$ simple interest for 9 months. What is the maturity value? (Round to the nearest cent)

To calculate interest, use the formula: ​Interest = Principle x Rate x Time or I=PRT

The business manager of Paws and Claws Pet Supply arranges a loan of $3,500, at 6.5% interest, for 30 months. Find the amount of interest.

Decorative Floors received a $1,200 promissory note at 10.5% simple interest for 4 months from one of its customers. After 1 month, the note was discounted at the Riverview Bank at a discount rate of 14%. What are the proceeds Decorative Floors will receive from the discounted note? Use ordinary interest.

Find the amount of simple interest on a loan of $3,500 at $9 \frac { 1 } { 2 } \%$ interest for 14 years.

Jackson was charged 11% interest and paid $189 interest on a simple interest loan for 3 months from his credit union. How much did he borrow? Use ordinary interest. (Round to the nearest cent)

Determine the number of days of the loan: Loan Date $\quad$ Due Date $\quad$ Number of Days July 12 $\quad$ $\quad$ September 5

Determine the number of days of the loan: Loan Date $\quad$ Due Date $\quad$ Number of Days May 1 $\quad$ $\quad$ August 10

On March 25, Helen Norton received from a customer a $3,200 promissory note at 12% ordinary interest for 60 days. On April 14, Helen discounted the note at the Glenside Bank at a discount rate of 15%. A)What was the maturity date of the note? B)What was the maturity value of the note? C)Determine the discount period. D)What proceeds did Helen receive on April 14?

When a note is noninterest-bearing, the maturity value equals the ____________________.

When calculating interest on loans with terms of days, there are two methods. ​ Ordinary Interest uses the 365 day calendar. ​ Exact Interest add one extra day 366 to account for leap year.​

____________________ interest has become known as the banker's rule.

Alicia borrowed $8,500 at 6% ordinary interest for 180 days. After 40 days, she made a partial payment of $2,000. After another 70 days, Alicia made a second partial payment of $2,000. What is the final amount due on the loan? (Round to the nearest cent)

Joan Leshner borrowed money to repair her house. The bank charged 13.8% simple interest. If the loan was repaid in 2 years, and the amount of interest was $1,518, how much did Joan borrow?

The amount of money being borrowed or invested is known as the ____________________.

Use the ordinary interest method to find the rate of interest that Make Over Picture Photo pays on a loan of $8,000 for 285 days, if the amount of interest is $590.00. (Round your answer to the nearest tenth percent)

What is the rate of interest on a loan of $2,000, for 284 days, if the amount of interest is $93.37, using the exact interest method? (Round your answer to the nearest tenth percent)

The owner of a hot dog stand receives a loan of $3,750 at 8.25% for 9 months. Find the amount of simple interest.(Round to the nearest cent)