Calculate the following: \[\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \begin{array} { l } \text { Time (in } \\ \text { years) } \end{array} & \begin{array} { l } \text { Simple } \\ \text { Interest } \end{array} \\ \hline \$ 55,000 & 6.25 \% & \text { ? } & \$ 5,156.25 \\ \hline \end{array}\]

The answer of Calculate the following: \[\begin{array} { | l...

Solve: \[\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \begin{array} { l } \text { Time (in days using } \\ \text { ordinary interest) } \end{array} & \text { Simple Interest } \\ \hline \$ 60,000 & 12 \% & ? & \$ 3,600 \\ \hline \end{array}\]

The answer of Solve: \[\begin{array} { | l | l...

Exam 10: Simple Interest

Bruce Seem took out the same loan as Alice in the preceding problem, but his terms were exact interest. What is the difference in interest cost and what will Bruce pay back on January 14, 2019? Who had better terms and why?

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(Short Answer)

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Question 1

Correct Answer:

Verified

$7.11; $20,012.08; Bruce had better terms because his interest owed is less.

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

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(True/False)

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Question 2

Correct Answer:

Verified

False

Find A and B in the table below. Principal Interest Rate Time Simple Interest Total Amount Owed \ 22,000 12\% 8

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(Short Answer)

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Question 3

Correct Answer:

Verified

A. $1,760 B. $23,760

The interest is the amount of money borrowed.

(True/False)

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Question 4

Federal Reserve banks as well as the federal government like to calculate simple interest based on:

(Multiple Choice)

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Question 5

Calculate the following: Principal Rate Time (in years) Simple Interest \ 55,000 6.25\% ? \ 5,156.25

(Short Answer)

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Question 6

On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what is the total interest cost to Bette?

(Short Answer)

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Question 7

Round to nearest cent: Principal Interest Rate Time Simple Interest Total Amount Owed \ 18,000 9\% 4

(Short Answer)

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Question 8

Solve: Principal Rate Time (in days using ordinary interest) Simple Interest \ 60,000 12\% ? \ 3,600

(Short Answer)

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Question 9

Match the following terms with their definitions. -Interest

(Multiple Choice)

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Question 10

Ordinary interest is never used by banks.

(True/False)

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Question 11

Interest is equal to:

(Multiple Choice)

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Question 12

Use ordinary interest: Date Date Simple Amount Principal Interest Rate Borrowed Repaid Time Interest Paid Back \ 9,000 11\% Apr 20 Aug 8 A B C

(Short Answer)

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Question 13

Simple interest usually represents a loan of:

(Multiple Choice)

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Question 14

Ben Young borrowed $5,000 on April 19 from Reliance Bank at a rate of 6.75%. Ben must repay the loan on December 16 of the same year. Assuming the loan is based on exact interest, what is the total interest cost?

(Short Answer)

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Question 15

Use exact interest: Interest Date Date Simple Amount Principal Rate Borrowed Repaid Time Interest Paid Back \ 24,000 12\% May 9 July 9 A B C

(Short Answer)

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Question 16

Principal is equal to rate divided by interest times time.

(True/False)

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Question 17

Interest is the cost of borrowing.

(True/False)

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Question 18

A note dated August 18 and due on March 9, given no leap year, runs for exactly:

(Multiple Choice)

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Question 19

Find A and B in the table below. Simple Total Amount Principal Interest Rate Time Interest Owed \ 18,000 9\% 3 yrs A B

(Short Answer)

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Question 20

Exam 10: Simple Interest

Bruce Seem took out the same loan as Alice in the preceding problem, but his terms were exact interest. What is the difference in interest cost and what will Bruce pay back on January 14, 2019? Who had better terms and why?

In the U.S. Rule, the first step is to calculate interest on the total life of the loan.

Find A and B in the table below. Principal Interest Rate Time Simple Interest Total Amount Owed \ 22,000 12\% 8

The interest is the amount of money borrowed.

Federal Reserve banks as well as the federal government like to calculate simple interest based on:

Calculate the following: Principal Rate Time (in years) Simple Interest \ 55,000 6.25\% ? \ 5,156.25

On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what is the total interest cost to Bette?

Round to nearest cent: Principal Interest Rate Time Simple Interest Total Amount Owed \ 18,000 9\% 4

Solve: Principal Rate Time (in days using ordinary interest) Simple Interest \ 60,000 12\% ? \ 3,600

Match the following terms with their definitions. -Interest

Ordinary interest is never used by banks.

Interest is equal to:

Use ordinary interest: Date Date Simple Amount Principal Interest Rate Borrowed Repaid Time Interest Paid Back \ 9,000 11\% Apr 20 Aug 8 A B C

Simple interest usually represents a loan of:

Ben Young borrowed $5,000 on April 19 from Reliance Bank at a rate of 6.75%. Ben must repay the loan on December 16 of the same year. Assuming the loan is based on exact interest, what is the total interest cost?

Use exact interest: Interest Date Date Simple Amount Principal Rate Borrowed Repaid Time Interest Paid Back \ 24,000 12\% May 9 July 9 A B C

Principal is equal to rate divided by interest times time.

Interest is the cost of borrowing.

A note dated August 18 and due on March 9, given no leap year, runs for exactly:

Find A and B in the table below. Simple Total Amount Principal Interest Rate Time Interest Owed \ 18,000 9\% 3 yrs A B

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