Exam 6: Simple Interest

How much will have to be deposited to earn $600 interest over two years at an interest rate of 3%?

How many days would it take for an investment of $9,000 to grow to $10,000 at 17%?

How much money would have to be invested from November 22 until June 29 of the following year at 19%, in order to earn $950 in interest?

Carly borrowed $2,500 from Clare on July 18 at an interest rate of 8%. On March 7 of the following year, Carly repaid the loan with interest. How much interest should she have paid?

A five-month term deposit of $10,000 at the Scotiabank earned $75 in interest. What annual rate of simple interest did the deposit earn?

Two equal payments, 50 days and 150 days after the date of the loan, paid off a $3000 loan at 8.25%. What was the amount of each payment?

What annual simple interest rate would be needed for $55,000 to grow to $60,000 over a term of 295 days?

At what simple annual interest rate would $1,896 grow to $2,000 in 300 days?

Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

A karate club offers two payment plans for a one-year membership. The first is a cash price of $475. The second is a payment of $250 today, and $250 in six months. If the interest rate charged by the club is 8%, which option has the greater economic value?

Calculate the amount of interest owed on the repayment date:

$12,800 was invested in a 237-day term deposit earning 3.75%. What was its maturity value?

What amount of interest will be earned on $1,500 invested for 18 months at an interest rate of 4%?

Penny invested $4,500 on October 28 at a floating rate of interest that initially stood at 6.3%. Effective December 2, the rate dropped by ½% and then it declined another ¼% effective February 27. What total amount of principal plus interest will Penny receive when the investment matures on March 15? Assume that the new year is a leap year.

Calculate the missing value:

If money if worth $1,150 now and $1,205 in 240 days, determine the rate of return that an investor would be indifferent between the two options.

Umberto borrowed $7,500 from Delores on November 7, 2013. When Umberto repaid the loan, Delores charged him $190.02 interest. If the rate of simple interest on the loan was 6.75%, on what date did Umberto repay the loan?

Ninety days ago Stella signed an agreement with Manon requiring her to make three payments of $400 plus interest 90, 150, and 210 days, respectively, from the date of the agreement. Each payment was to include interest on the $400 principal at the rate of 13.5% from the date of the agreement. Stella now wants Ed to renegotiate the agreement and accept a single payment 30 days from now, instead of the three scheduled payments. What payment should Manon require in the new agreement if money is worth 8.5%?

A $2875.40 investment grew to $3000 after eight months. What annual rate of simple interest did it earn?

Calculate the equivalent value of the scheduled payments if money can earn the rate of return specified in the last column. Assume that any payments due before today have been missed.