Exam 10: Simple Interest and Promissory Notes

What is the effective interest rate of a simple discount note for $3,500 at a bank discount rate of 11%, for 24 months? (Round to the nearest tenth percent)

Mike Gioulis signed a $23,000 simple discount promissory note at a bank discount rate of $12 \frac { 3 } { 4 } \%$ . If the term of the note was for 8 months, what was the effective rate of interest? (Round to the nearest hundredth of a percent)

Toby signed a simple discount promissory note for $20,000. The discount rate is 8.5%, and the term of the note is 90 days. What are Todd's proceeds on the loan?

Find the amount of the principal on a loan at 6% interest for 274 days if the interest was $68.50, using the ordinary interest method. (Round to the nearest whole dollar amount)

Velvety Smooth Linens takes out a loan of $3,500, for 314 days. If the amount of interest is $83.29, use the exact interest method to find the rate. (Round to nearest tenth percent)

You sign a simple discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What are the proceeds?

What is the time period of a loan for $2,500, at 12% exact interest, if the amount of interest is $118.36? (Round to next higher day)

Find the amount of interest and the maturity value of the loan: Principal Rate Time Interest Maturity Value \ 28,000 11.9\% 2

On August 5, Lacey Jewelry Store purchased $5,000 of jewelry from their supplier with terms of 2/10, n/45. Lacey did not have sufficient cash on August 15 to take advantage of the cash discount, but is able to borrow money from the bank at 12.6% ordinary interest. How much can be saved by borrowing the funds for 30 days in order to take advantage of the cash discount?

____________________ is the rental fee charged by a lender to a business or an individual for the use of money.

Use the exact interest method to find the rate of interest that Veldez Decks pays on a loan of $9,000 for 354 days, if the amount of interest is $489.50. (Round your answer to the nearest tenth percent)