Exam 6: Simple Interest

A $7760 investment earning 6.25% matured at $8083.33. What was the term (in months) of the investment?

On September 4 Fred made a $25,000 loan to Ricky for an investment that was guaranteed to earn an interest rate of 40%. On March 11 of the following year, Ricky cashed in his investment and received the interest as had been promised. How much interest had he earned?

At what rate can money be invested if $2370.00 is equivalent to $2508.79 paid 190 days later?

Eight months ago, Louise agreed to pay Thelma $750 and $950 six and twelve months, respectively, from the date of the agreement. With each payment, Louise agreed to pay interest on the respective principal at the rate of 9.5% from the date of the agreement. Louise failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Thelma be willing to accept if money can earn 7.75%?

Seth has a loan to repay. His terms are payments of $1,000 in six months and $1,000 in one year. He wants to settle the debt in three months. If the rate of interest is 6.5%, what single equivalent payment should Sam make?

After how many days will a loan of $888 at 15% amount to $1554 (including accrued interest)?

Two payments of $5,000 60 days ago and $5,000 in 120 days are to be replaced by a payment now and $4,000 in 90 days. If interest is 3.2% annually, determine the amount to pay now, if the focal point is today.

How long would it take for a $25,000 investment to earn $2,000 interest at 13.5%?

Jacques received the proceeds from an inheritance on March 15. He wants to set aside, in a term deposit on March 16, an amount sufficient to provide a $45,000 down payment for the purchase of a home on November 1. If the current interest rate on 181-day to 270-day deposits is 3.75%, what amount should he place in the term deposit?

Calculate the simple interest rate at which one can earn $1,500 per day interest on an investment of $7,500,000.

If $3,702.40 earned $212.45 interest from September 17, 2014 to March 11, 2015, what rate of interest was earned?

Robert placed $7,000 in a 10-month term deposit paying 6.25%. How much will the term deposit be worth when it matures?

If money if worth $1,500 now and $1,540 in 90 days, determine the rate of return that an investor would be indifferent between the two options.

A $7,500 loan will be paid off by four equal payments to be made 2, 5, 9, and 12 months after the date of the loan. What is the amount of each payment if the interest rate on the loan is 9.9%?

What simple annual interest rate would you need to earn $2,000 interest in 147 days on an investment of $49,000?

Marta borrowed $1,750 from Jasper on November 15, 2014, and agreed to repay the debt with simple interest at the rate of 7.4% on June 3, 2015. How much interest was owed on June 3?

On December 19 Jerry's $800 deposit matured at $848.22. It had been earning 8%. What was the date that he made the deposit?

What amount, seven months from now, is equivalent to $1215 today if money can be invested to earn 4.5%?

Payments of $1,400 and $2,500 were due 90 days ago and 120 days ago, respectively. What is the combined economic value today of these payments if money can earn 9%?

Dominion Contracting invested surplus funds in term deposits. All were chosen to mature on April 1 when the firm intends to purchase a new grader. What total amount will be available from the maturing term deposits on April 1 (of a leap year)?