Exam 6: Simple Interest

A $10,000 90-day term deposit earns 4.5% interest. How much will the depositor have at maturity?

A large retail store offers no payments, no interest for six months on all furniture and appliance purchases exceeding $1,500. If money can earn 3.5%, how much should the store accept as a payment today on furniture costing $1,850?

On what date was a $1000 loan granted if the interest accrued as of November 16, 2013 was $50.05? The interest rate on the loan was 7.25%.

Susan wants a 120-day extension on a payment of $2,000. If she and her creditor agree that money can now earn 6%, what amount should she pay at the later date?

How much money would I have to invest at 6 ½% to earn interest of $4,500 per month?

Calculate the missing values:

Sam earned $650 on an investment deposited at an interest rate of 3.25% for 30 months. How much was the original investment?

A $1000 loan at 3% was repaid by two equal payments made 30 days and 60 days after the date of the loan. Determine the amount of each payment.

Sharon's $9,000 term deposit matured on March 16, 2014. Based on a simple interest rate of 3.75%, she received $110.96 in interest. On what date did she originally make the term deposit?

Ace Furniture will give you 8 months, interest free, before you have to pay for a $2,000 sofa. Based on the fact that Ace pays 14% on its short term debt, what would be a reasonable amount of cash for you to offer them at the time of purchase?

Grandma Jones has $300,000 in a bank account, which pays her interest at 3%. What is the largest amount of money that she could take out now and still leave enough in the account so that she can earn $600 per month in interest?

Cecille placed $17,000 in a 270-day term deposit earning 4.25%. How much will the bank pay Cecille on the maturity date?

What was the simple interest rate if an investment of $35,000 earned interest of $250 between April 4 and May 23?

Patrick has a contract that will pay him $3,500 in 11 months. If money can earn 15%, what will be the value of that contract three months from now?

What was the interest rate on a $1750 loan if the amount required to pay off the loan after five months was $1,828.02?

What is meant by "equivalent payments"?

Payments of $1,000 and $7,500 were originally scheduled to be paid five months ago and four months from now, respectively. The first payment was not made. What payment two months from now is equivalent to the scheduled payment if money can earn 6.25%?

If $450,000 is invested on June 3 at 7.75%, what will be the value of the investment on December 11?

A deposit of $659 earns $15.10 interest at a rate of 4.5%. For how many days was this money on deposit?

We frequently hear a news item that goes something like: "Joe Superstar signed a 5-year deal worth $25 million. Under the contract he will be paid $3 million, $4 million, $5 million, $6 million and $7 million in successive years." In what respect is the statement incorrect? How should the value of the contract be calculated?