Exam 10: Simple Interest and Promissory Notes

The owner of a service station receives a loan of $8,500 at 10.5% for 7 months. Find the amount of simple interest.(Round to the nearest cent)

What is the effective interest rate of a simple discount note for $7,000 at a bank discount rate of 6%, for 3 months? (Round to the nearest tenth percent)

Determine the maturity date of the loan: Loan Date $\quad$ Time of Loan $\quad$ Maturity Date May $30 \quad \quad160$ days

Casey Walker borrowed $18,000 at 12% ordinary interest for 180 days. After 80 days, Casey made a partial payment of $10,000. What is the new maturity value of the loan? (Round to the nearest cent)

Brian signed a simple discount note for $8,500. The discount rate is 14%, and the term of the note is 18 months. What is the effective interest rate? (Round to the nearest tenth percent)

____________________ are short-term government securities with maturities of 4 weeks, 13 weeks, and 26 weeks.

Yo Yogurt received a promissory note of $15,500 for 16 months at 8% simple interest from one of its customers. After 9 months, the note was discounted at Gassaway Bank at a discount rate of 10%. What are the proceeds Yo Yogurt will receive from the discounted note? (Round to the nearest cent)

Shaylash takes out a loan for $10,500, at 8.5% exact interest. If the amount of interest is $858.03, what is the time period of the loan? (Round any fraction to the next higher day)

Find the amount of the principal on a loan at 6% interest for 140 days if the interest was $253.15, using the exact interest method. (Round to the nearest whole dollar amount)

Use the exact method (365 days) and the ordinary interest method (360 days) to compute the amount of interest for the following loan, rounding to the nearest cent: Principal Rate Time Exact Interest Ordinary Interest \ 40,000 14\% 100 days

Suppose you take out a loan for $5,000, at 6% ordinary interest. If the amount of interest is $91.67, what is the time period? (Round to next higher day)

Ben was charged 12.5% interest and paid $375 interest on a simple interest loan for 45 days from his local bank. How much did he borrow? Use exact interest. (Round to the nearest cent)

Patty wants to pay off a medical bill. He took out a loan for $1,250 with his credit union, at 6.25% interest, for 2.5 years. What is the amount of interest on Patty's loan? (Round to the nearest cent)

Kevin Mills borrowed money to purchase a car at 14.4% ordinary interest for a time period from March 1 to August 18. The amount of interest on this loan was $204. How much did Kevin borrow?

Maturity value is the total payback of a simple interest loan that includes the principal plus the interest. ​

When calculating simple interest and the time is expressed in months, you must multiply the number of months by 12.​

Marcy Link took out a loan for $9,100 at the Eastern Trust Bank for 160 days. The bank uses the ordinary interest method for calculating interest. What rate of interest was charged if the amount of interest was $521.73? (Round to the nearest tenth of a percent)

Lars was charged 10.5% interest and paid $475 interest on a simple interest loan for 30 days from his local bank. How much did he borrow? Use exact interest. (Round to the nearest cent)

What is the maturity date on a loan for $6,800 at 16.2% ordinary interest, taken out on April 4? The amount of interest on the loan was $183.60.

The price or rental fee charged by a lender to a borrower for the use of money is known as principal. ​ ​