Exam 6: Simple Interest

The interest owed on a loan after 5 months was $292.50. If the simple interest rate charged on the loan was 0.9% per month, what was the amount borrowed?

Morgan loaned $3,100 to Rolf at a simple interest rate of 0.65% per month. What was the term of loan if the total interest came to $221.65?

Village Finance Co. advanced three loans to Kamiko-$2,200 on June 23, $1,800 on August 5, and $1,300 on October 31. Simple interest at 7.25% was charged on all three loans, and all were repaid on December 31 when some bonds that she owned matured. What total amount was required to pay off the loans?

Calculate the missing value:

If money if worth $985 now and $1005 in two months, determine the rate of return that an investor would be indifferent between the two options.

What amount would have to be invested at a simple interest rate of 2.85% to grow to $2,529.28 in 150 days?

The maturity value of an investment earning 7.7% per annum for a 360-day term was $2291.01. What amount was originally invested?

Under what circumstance is $100 paid today equivalent to $110 paid 1 year from now?

Payments of $700 due three months ago and $1,000 six months from now are to be replaced by one equivalent payment four months from now. What is the size of this payment if money can earn 7%?

How many months would it take for $3,500 to grow to $4,000 at 15%?

Raimo borrowed $750 from Chris on October 30 and agreed to repay the debt with simple interest at the rate of 4.3% on May 10. How much interest was owed on May 10? Assume that February has 28 days.

Marika earned $40.07 interest at 2.5% on $5,000 invested on April 7. On what date did her investment mature?

On April 3 Artie invested $75,000 and by October 27 he had earned interest of $10,500. What simple interest rate had he earned?

How much interest could you earn, over 5 months on an investment of $94,000 at 17.75%?

The bookkeeper for Durham's Garage is trying to allocate to principal and interest a payment that was made to settle a loan. The cheque stub has the note "$3,701.56 for principal and 7 months' interest at 12.5%." What are the principal and interest components of the payment?

Dalton loaned $550,000 to Doc Holliday on August 24. On February 8 of the following year, Doc paid to Dalton the $65,000 interest that had accumulated on the debt up to that time. What simple rate of interest was Dalton charging on this loan?

How much interest will be earned on $8,000 over a period of four months if the interest rate is 6.5%?

What single payment one year from now will satisfy two obligations: $4,000 due today and $6,000 due 18 months from now? Assume that money can earn 14%.

Three payments of $2,000 (originally due six months ago, today, and six months from now) have been renegotiated to two payments: $3,000 one month from now and a second payment due in four months. What must the second payment be for the replacement payments to be equivalent to the originally scheduled payments? Assume that money can earn an interest rate of 4%. Choose a focal date four months from now.

The balance after 11 months, including, on a loan at 9.9% is $15,379.58. What are the principal and interest components of the balance?