Question 1

Round to nearest cent:
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest Rate } & \text { Time } & \begin{array} { l } 
\text { Simple } \
\text { Interest }
\end{array} & \begin{array} { l } 
\text { Total Amount } \
\text { Owed }
\end{array} \
\hline \$ 32,000 & 7 \% & 3 \text { yrs } & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

A. $6,720

Question 2

The amount charged for the use of a bank's money is called:

Accepted Answer

A) Principal 
B) Interest 
C) Rate 
D) Time 
E) None of these 
A) Principal 
B) Interest 
C) Rate 
D) Time 
E) None of these

Question 3

Match the following terms with their definitions.
-Ordinary interest

Accepted Answer

A) 360 days 
B) Principal times rate times time 
C) Cost of borrowing 
D) 365 days 
E) Result of applying the U.S. rule
F)Maturity value
G)Partial payment must be applied to interest first
H)Amount due on due date
I)Amount of money borrowed
J)Consumer groups against it 
A) 360 days 
B) Principal times rate times time 
C) Cost of borrowing 
D) 365 days 
E) Result of applying the U.S. rule
F)Maturity value
G)Partial payment must be applied to interest first
H)Amount due on due date
I)Amount of money borrowed
J)Consumer groups against it

Question 4

In calculating interest in the U.S. Rule from the last partial payment, the interest is subtracted from the adjusted balance.

Accepted Answer

A) True 
 B)False

Question 5

A note dated Dec. 13 and due July 5 (assume no leap year)runs for exactly:

Accepted Answer

A) 11 days 
B) 161 days 
C) 204 days 
D) 347 days 
E) None of these 
A) 11 days 
B) 161 days 
C) 204 days 
D) 347 days 
E) None of these

Question 6

Find the adjusted balance (principal)using the U.S. Rule (360 day)after the first payment.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Rate } & \text { Total Time for Note } & \text { Note Amount } & \begin{array} { l } 
\text { Partial Payment } \
\text { on Day 30 }
\end{array} & \begin{array} { l } 
\text { Partial Payment } \
\text { on Day 90 }
\end{array} \
\hline 11 \% & 120 \text { days } & \$ 7,000 & \$ 900 & \$ 1,200 \
\hline
\end{array}$$

Accepted Answer

The answer of Find the adjusted balance (principal)using the U.S....

Question 7

Alice took out a loan for $19,500 at 13 1/2% on Nov 4, 2018 which will be due on January 14, 2019. Using ordinary interest, what will be the interest cost and what amount will Alice pay back on January 14, 2019?

Accepted Answer

Days = 26 + 31 + 14

Question 8

Match the following terms with their definitions.
-Exact interest

Accepted Answer

A) 360 days 
B) Principal times rate times time 
C) Cost of borrowing 
D) 365 days 
E) Result of applying the U.S. rule
F)Maturity value
G)Partial payment must be applied to interest first
H)Amount due on due date
I)Amount of money borrowed
J)Consumer groups against it 
A) 360 days 
B) Principal times rate times time 
C) Cost of borrowing 
D) 365 days 
E) Result of applying the U.S. rule
F)Maturity value
G)Partial payment must be applied to interest first
H)Amount due on due date
I)Amount of money borrowed
J)Consumer groups against it

Question 9

Rochelle Destin bought a new Buick Enclave. Her monthly January interest was $294.00. The current rate of interest is 9%. Assuming a 360-day year, what was Rochelle's balance at the beginning of January?

Accepted Answer

P = 294 /

Question 10

Interest is $405 on a principal balance of $5,000; assuming a 7 month loan, what is the rate? Round to the nearest cent or hundredth percent as needed.

Accepted Answer

$405/(5,00

Question 11

The federal government likes to use ordinary interest.

Accepted Answer

A) True 
 B)False

Question 12

Abby borrowed $3,000 at 12 3/4% on Sept. 10. The loan is due on Jan. 29. Assuming the loan is based on ordinary interest, how much will Abby pay on Jan. 29?

Accepted Answer

Days = 20 (Sep)+ 31 (Oct)+ 30

Question 13

Joan Roe borrowed $85,000 at a rate of 11 3/4%. The date of the loan was July 8. Joan is to repay the loan on Sept. 14. Assuming the loan is based on exact interest, the interest Joan will pay on Sept. 14 is:

Accepted Answer

A) $86,860.68 
B) $1,860.68 
C) $1,886.53 
D) $86,886.53 
E) None of these 
A) $86,860.68 
B) $1,860.68 
C) $1,886.53 
D) $86,886.53 
E) None of these

Question 14

Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5% to open her lingerie shop. The date of the loan was March 5. Sue hoped to repay the loan on September 19. Assuming the loan is based on ordinary interest, Sue will pay back how much in interest expense?

Accepted Answer

A) $467.50 
B) $541.25 
C) $514.25 
D) $506.46 
E) None of these 
A) $467.50 
B) $541.25 
C) $514.25 
D) $506.46 
E) None of these

Question 15

Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning of June is (use 360 days):

Accepted Answer

A) $65,740.58 
B) $64,470.58 
C) $65,704.58 
D) $56,470.59 
E) None of these 
A) $65,740.58 
B) $64,470.58 
C) $65,704.58 
D) $56,470.59 
E) None of these

Question 16

The number of days between May 20 and November 22 is:

Accepted Answer

A) 197 
B) 206 
C) 186 
D) 183 
E) None of these 
A) 197 
B) 206 
C) 186 
D) 183 
E) None of these

Question 17

On May 17, Jane took out a loan for $33,000 at 6% to open her law practice office. The loan will mature the following year on January 16. Using the ordinary interest method, what is the maturity value due on January 16?

Accepted Answer

A) $34,342 
B) $34,320 
C) $34,323.62 
D) $34,254 
E) None of these 
A) $34,342 
B) $34,320 
C) $34,323.62 
D) $34,254 
E) None of these

Question 18

July 10 to March 15, given no leap year, is 119 days.

Accepted Answer

A) True 
 B)False

Question 19

Use exact interest:
 $\begin{array}{|l|l|l|l|l|l|l|}
\hline & \text { Interest } & \text { Date } & \text { Date } & & \text { Simple } & \text { Amount } \
 \text { Principal }&\text { Rate } & \text { Borrowed } & \text { Repaid } & \text { Time } & \text { Interest } & \text { Paid Back } \
\hline \$ 12,000 & 14 \% & \text { Jun } 8 & \text { Oct } 7 & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$

Accepted Answer

A. 121 day

Question 20

The number of days between Aug. 9 and Jan. 3 is:

Accepted Answer

A) 145 
B) 144 
C) 147 
D) 148 
E) None of these 
A) 145 
B) 144 
C) 147 
D) 148 
E) None of these

Exam 10: Simple Interest

Round to nearest cent: Principal Interest Rate Time Simple Interest Total Amount Owed \ 32,000 7\% 3 yrs A B

The amount charged for the use of a bank's money is called:

Match the following terms with their definitions. -Ordinary interest

In calculating interest in the U.S. Rule from the last partial payment, the interest is subtracted from the adjusted balance.

A note dated Dec. 13 and due July 5 (assume no leap year)runs for exactly:

Find the adjusted balance (principal)using the U.S. Rule (360 day)after the first payment. Rate Total Time for Note Note Amount Partial Payment on Day 30 Partial Payment on Day 90 11\% 120 days \ 7,000 \ 900 \ 1,200

Alice took out a loan for $19,500 at 13 1/2% on Nov 4, 2018 which will be due on January 14, 2019. Using ordinary interest, what will be the interest cost and what amount will Alice pay back on January 14, 2019?

Match the following terms with their definitions. -Exact interest

Rochelle Destin bought a new Buick Enclave. Her monthly January interest was $294.00. The current rate of interest is 9%. Assuming a 360-day year, what was Rochelle's balance at the beginning of January?

Interest is $405 on a principal balance of $5,000; assuming a 7 month loan, what is the rate? Round to the nearest cent or hundredth percent as needed.

The federal government likes to use ordinary interest.

Abby borrowed $3,000 at 12 3/4% on Sept. 10. The loan is due on Jan. 29. Assuming the loan is based on ordinary interest, how much will Abby pay on Jan. 29?

Joan Roe borrowed $85,000 at a rate of 11 3/4%. The date of the loan was July 8. Joan is to repay the loan on Sept. 14. Assuming the loan is based on exact interest, the interest Joan will pay on Sept. 14 is:

Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5% to open her lingerie shop. The date of the loan was March 5. Sue hoped to repay the loan on September 19. Assuming the loan is based on ordinary interest, Sue will pay back how much in interest expense?

Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning of June is (use 360 days):

The number of days between May 20 and November 22 is:

On May 17, Jane took out a loan for $33,000 at 6% to open her law practice office. The loan will mature the following year on January 16. Using the ordinary interest method, what is the maturity value due on January 16?

July 10 to March 15, given no leap year, is 119 days.

Use exact interest: Interest Date Date Simple Amount Principal Rate Borrowed Repaid Time Interest Paid Back \ 12,000 14\% Jun 8 Oct 7 A B C

The number of days between Aug. 9 and Jan. 3 is:

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