Exam 10: Simple Interest and Promissory Notes

Suppose you take out a loan for 180 days in the amount of $13,500 at 11% ordinary interest. After 50 days, you make a partial payment of $1,000. What is the final amount due on the loan? (Round to the nearest cent)

Shameka was charged 8.45% interest and paid $983.50 interest on a simple interest loan for 95 days from her local bank. How much did she borrow? Use ordinary interest. (Round to the nearest cent)

Chuck Widle borrowed $2,340 from the National Bank on May 12 and repaid the loan on November 12. The bank charged $9 \frac { 1 } { 2 } \%$ simple interest, calculated by the exact interest method. What was the maturity value of the loan? (Round to the nearest cent)

Bart's Construction, Inc. received a promissory note of $12,500 at 7% simple interest for 14 months from one of its customers. After 4 months, Fairlenders, Inc.discounted the note at a discount rate of 9%. Calculate the proceeds that Bart's will receive from the discounted note. (Round to the nearest cent)

Find the maturity value of the loan (use the formula MV = P(1+ RT) to find the maturity value): (Round to the nearest cent) Principal Rate Time Interest Maturity Value \ 1,850 10\% 1

Olga Gioulis purchased $7,000 in U.S. Treasury bills with a discount rate of 5.4% for a period of 4 weeks. How much interest did Olga earn on the T-bill investment? How much was the purchase price of Olga's T-bills? What was the effective interest rate of Olga's T-bill investment? (Round to the nearest hundredth of a percent)

Alana Rodriguez borrowed $13,000 at 9% ordinary interest for 140 days. After 60 days, she made a partial payment of $3,000. What is the final amount due on Alana's loan?

Use the ordinary interest method to find the rate of interest that Valley Mountain Vineyards pays on a loan of $5,500 for 234 days, if the amount of interest is $345.67. (Round to nearest tenth percent)

Find the maturity value of the loan (use the formula MV = P(1+ RT) to find the maturity value): Principal Rate Time Maturity Value \ 10,900 8\% 3 years

Devon takes out a loan of $1,500, at $6 \frac { 1 } { 2 } \%$ simple interest, for 56 months. What is the maturity value of the loan? (Round to the nearest cent)

Saturn Corporation borrowed $412,000 at $12 \frac { 1 } { 2 } \%$ interest on May 20 for 72 days. The bank uses the exact interest method. What is the amount of interest on the loan? (Round to the nearest cent)

Webster Digital received a promissory note of $8,000 for 9 months at 7% simple interest from one of its customers. After 4 months, the note was discounted at Bank of Aventura at a discount rate of 10%. What are the proceeds Webster Digital will receive from the discounted note? (Round to the nearest cent)

Street's Candy Shop needs to borrow $50,000 for 120 days. If the interest rate for such loans is currently 12.4%, how much can Street save by finding a lending institution that uses the exact interest method rather than the ordinary interest method? (Round to the nearest cent)

Lillian signed a simple discount promissory note for $9,500. The discount rate is 11%, and the term of the note is 30 months. What are Lillian's proceeds on the loan?

Find the maturity value on a loan of $2,500 at 10.5% interest, for 60 months. Use the formula MV = P + I.

____________________ interest uses 365 days as the time factor denominator in the simple interest formula.

Julius takes out a loan of $9,500, at 9.5% simple interest, for 4 months. What is the maturity value of the loan? (Round to the nearest cent)

Artigas Engineering received a promissory note of $8,500 at 8% simple interest for 14 months from one of its customers. After 9 months, Yankee Bank discounted the note at a discount rate of 10%. Calculate the proceeds that Artigas Engineering will receive from the discounted note.

What are the proceeds of a note for $10,500 at a discount rate of 5%, for 30 months?

The chief business officer of a construction equipment company arranges a loan of $9,300, at $12 \frac { 1 } { 8 } \%$ interest for 37.5 months. Find the amount of interest. (Round to the nearest cent)