Exam 6: Simple Interest

$7348.25 was the amount required to pay off a loan after 14 months. If the loan was at 8.25% per annum simple interest, how much of the total was interest?

Calculate the missing value:

On June 26 Laura put $2,750 into a term deposit until September 3, when she needs the money for tuition, books, and other expenses to return to college. For term deposits in the 60-89-day range, her credit union pays an interest rate of 4.25%. How much interest will she earn on the term deposit?

If money is worth 14 %, what payment on August 29 would be equal in value to a payment of $86,900 due on January 31 of the following year?

How many months would it take to earn $3,570 interest on a deposit of $84,000 earning 8 ½%?

Calculate the missing value:

Calculate the missing value:

In addition to a $2,163 refund of his income tax overpayment, the Canada Revenue Agency (CRA) paid Raisa $13.36 of interest on the overpayment. If the simple interest rate paid by Revenue Canada was 5.5%, how many days' interest was paid?

On what day will the amount of interest earned reach $5,000 if $250,000 was invested at an interest rate of 11% on June 23?

Calculate the missing value:

Which of the following two payment streams has the greater economic value today if money can earn 3.5%: $500 now, $600 in three months, plus $900 in six months or $700 now, $300 in three months, plus $1,000 in nine months?

A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?

Calculate the missing values:

$3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

Payments of $2,500 due now and $6,500 due in 90 days are to be replaced by a $4,000 payment due in 120 days and a final payment due in 180 days from now. If interest is 5.5% annually, determine the value of the final payment if the focal point is 180 days from now.

The interest earned on a $7,500 investment was $1181.25. What was the term in months if the rate of interest was 3.5%?

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?

A loan of $1,580 bearing interest at 15% is due nine months from now. What single payment three months before the loan is due will put the lender in the same financial position as the scheduled payment at maturity? Assume that money can earn 12%.

Karen borrowed $2,000 at 10¼% on July 13. On what date would the amount owed first exceed $2,100?

A $3,000 payment is scheduled for 6 months from now. If money is worth 6.75%, calculate the payment's equivalent values at two-month intervals beginning today and ending one year from now.