Exam 6: Simple Interest

On March 14 Lisa invested in a 200-day term deposit. On what date will it mature?

The simple interest rate on a $5,000 loan is 7%. The loan is to be repaid by four equal payments on dates 100, 150, 200, and 250 days from the date on which the loan was advanced. What is the amount of each payment?

What amount invested at 4.5% on November 19, 2014 had a maturity value of $10,000 on March 3, 2015?

A department store is offering a television for $720 now or can pay $725 in 90 days. If interest is 10%, determine whether a customer should purchase now or in 90 days.

If $4,000 is to be paid now. What amount would be equivalent 97 days earlier given an interest rate of 4.25% per year?

Grandpa Smith has $200,000 in a bank account, which pays him interest at 4%. What is the largest amount of money that he could take out now and still leave enough in the account so that he can earn $500 per month in interest?

The cash balance in Amalia's account with her stockbroker earns interest on the daily balance at an annual rate of 4%. Accrued interest is credited to her account every six months-on June 30 and December 31. As a result of the purchase and sale of securities from time to time, the account's balance changed as follows: Investment date Amount invested Interest rate M What interest was credited to Amalia's account on June 30? The brokerage firm includes interest for both January 1 and June 30 in the June 30 payment. Assume that February had 28 days.

Calculate the amount of money that would have to be invested at 8.5% to earn monthly interest of $3,000?

Michaela is supposed to pay $15,000 to Mahmoud, but due to financial constraints, has to be delayed by one quarter. Determine the future amount if the rate of interest is 11.45%

How much interest will an investment of $5,075 earn in two years at an interest rate of 2.25%?

An invoice states that interest will be charged on overdue accounts at the rate of 1½% per month. What will be the interest charges on a $3,760 billing that is 3 months overdue?

The first two of the following three payments were not made as scheduled. $1,200 was due seven months ago, $900 was due two months ago, and $1,500 is due in one month. The three payments are to be replaced by a single equivalent payment due three months from now. What should the payment be if money is worth 9.9%? Use three months from now as the focal date.

Mike borrowed $6,000 on August 15 at a rate of 9.3% annually. Two payments of $2,000 were made on September 1 and November 1 to reduce the loan. What amount should be paid on December 15 to pay off the loan?

Petra has forgotten the rate of simple interest she earned on a 120-day term deposit at Scotiabank. At the end of the 120 days, she received interest of $327.95 on her $21,000 deposit. What rate of simple interest was her deposit earning?

What payment 5 months from now would be equivalent in value to a $4,000 payment due today and a $3,000 payment due 7 months from now? Money can earn 6.5%.

Calculate the amount of interest that would be earned on an account of $344,000 if it earned 4.95% for 37 days.

Cindy borrowed $750 from Clare on April 17 at an interest rate of 15%. On June 30 of the same year, Clare repaid the loan with interest. How much interest should she have paid?

$12,000 due today is to be replaced by three equal payments in 30, 60 and 90 days from today. If interest is 8.4% annually, determine the value of the payments. Use a focal date of today.

Two payments of $1,000 now and $3,000 in 6 months are to be replaced by $2,500 in 4 months and another in 9 months. If the rate of interest is 6.3% annually, determine the value of the final payment in 9 months if the focal point is in 9 months.

Seven months ago Julie received some money for her birthday and she immediately deposited it into an account earning 6.5%. Today the value of that deposit has reached $4,259.88. How much did she deposit 7 months ago?