Exam 6: Simple Interest

What interest rate must money earn for a payment of $1,389 on August 20 to be equivalent to a payment of $1,348 on the previous March 29?

Marliss made a $780.82 purchase on her Visa card. Including 45 days' interest, the amount billed on her credit card was $798.63. What annual interest rate does her card charge?

David is supposed to pay $975 to Mark, but wishes to delay it for 6 months. Determine the amount Mark should expect in 6 months if the rate of interest is 4.75%

How many months would it take to earn $1,650 interest on a deposit of $44,000 at 7 ½%?

After 4 months how much interest would I have to pay on a loan of $500 if the rate of interest was 22%?

Calculate the missing value:

$22,000 was due 90 days ago. It is now to be repaid in three equal payments in 30, 60 and 180 days from now. If interest is 5.92% annually, determine the value if the focal date is today.

How can you determine which of three payments has the largest economic value?

Calculate the simple interest rate at which one can earn $500 per day interest on an investment of $1,800,000.

How much money would I have to invest at 9 ½% to earn interest of $9,200 per month?

A $6,000 loan at 8% is to be repaid in three equal payments at three months, six months, and nine months. Determine the size of the equal payments.

Carly borrowed $450 from Jenn on August 24 at an interest rate of 11%. On January 11 of the following year, Carly repaid the loan with interest. How much interest should she have paid?

Sergon has $5,000 to invest for six months. The rates offered on three-month and six-month term deposits at his bank are 3.5%, 3.8%, respectively. He is trying to choose between the six-month term deposit and two consecutive three-month term deposits. What would the simple interest rate on three-month term deposits have to be, three months from now, for Sergon to end up in the same financial position with either alternative? Assume that he would place both the principal and interest from the first three-month term deposit in the second three-month term deposit.

Payments of $2,600, due 50 days ago, and $3,100, due in 40 days, are to be replaced by $3,000 today and another payment in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.25%. Use 30 days from now as the focal date.

If, on March 11, $12,000 was placed in an investment earning an interest rate of 16%, on what day will the amount of interest earned reach $1,000?

How much interest could you earn over 2 months on an investment of $82,500 at 23.5%?

$7,500 was due 3 months ago. It is now to be repaid in three equal payments in 4, 8 and 10 months from now. If interest is 3.85% annually, determine the value if the focal date is in 4 months.

Payments of $850 and $1,140 were scheduled to be paid today and nine months from now, respectively. What total payment today would place the payee in the same financial position as the scheduled payments? Money can earn 8.25%.

Megan was charged $124.83 interest on her bank loan for the period September 18 to October 18. If the rate of interest on her loan was 8.25%, what was the outstanding principal balance on the loan during the period?

Marika deposited $2,100 on May 22. On September 10, she had $2,120.12. What simple interest rate per year did she earn?