Exam 10: Simple Interest and Promissory Notes

Karen's Katering borrows $4,500, at 8.5% interest, for 260 days. If the bank uses the exact interest method, how much interest will the bank collect? (Round to the nearest cent)

The chief business officer of plumbing supply company arranges a loan of $12,400, at $10 \frac { 1 } { 8 } \%$ interest for 29 months. Find the amount of interest. (Round to the nearest cent)

Henry Black's property taxes of $1,726 were due on September 12. The municipality charges a $7 \frac { 3 } { 4 } \%$ simple interest penalty, calculated by the ordinary interest method, for the time the payment is late. Henry paid the taxes on October 20. What was the amount of his payment? (Round to the nearest cent)

Determine the maturity date of the loan: Loan Date $\quad$ Time of Loan $\quad$ Maturity Date August $14 \quad 90$ days

Kim Maugeri deposited $8,000 in a savings account paying 5.25% ordinary interest. How long will it take for her investment to grow to $10,100?

Determine the number of days of the loan: Loan Date $\quad$ Due Date $\quad$ Number of Days May 14 $\quad$ $\quad$ August 20

Marquita borrowed $10,000 on June 19 and repaid the loan on ​November 8. The loan was for 142 days.

To solve for the rate, use the following formula: ​ Rate = Principal x Interest x Time​

A loan has a due date of November 20. If it is made on August 21, for how many days is the loan?

A loan has a due date of January 15. If it was made on October 3, of the previous year, for how many days is the loan?

On October 10, Blake Redman borrowed $2,600 from his credit union at 12% for 120 days. The credit union uses the ordinary interest method. What is the amount of interest on the loan? (Round to the nearest cent)

Find the amount of interest and the maturity value of the loan: Principal Rate Time Interest Maturity Value \ 118,000 12\% 1

Find the interest on the loan: Principal Rate Time Interest \ 28,000 7\% 2 years

What is the maturity date of a loan taken out on June 6, for 73 days?

Find the amount of simple interest on a loan of $2,500 at 4.44% interest for 12.75 months. (Round to the nearest cent)

Find the maturity value of the loan (use the formula MV = P(1+ RT) to find the maturity value): Principal Rate Time Maturity Value \ 615,000 12.6\% 15 months

Find the interest on the loan: Principal $\quad$ Rate $\quad$ $\quad$ Time $\quad$ Interest $\$ 36,000$ $\quad$ $8 \frac { 1 } { 2 } \%$ $\quad$ 5 months

The process of selling a promissory note to a bank at any time before maturity is known as ____________________ a note.

Ada signed a simple discount promissory note for $5,500. The discount rate is 12%, and the term of the note is 5 months. What are Ada's proceeds on the loan?

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 \ 2,500 12.5\% 20 days