Exam 9: Simple Interest

Solve the problem. -The Gibralter Company loaned $7,843 for 60 days to the Hazen Company for the purchase of business supplies. The Gibralter Company sold the 7% simple interest note 44 days later at an 9% Discount rate. Find the discount period and the discount.

Answer the question about the promissory note given. ------------------------Promissory Note------------------------ March 12 Ninety days after date above, I promise to pay to the order of Thomas Ronney $610 dollars and no Cents with interest at 13% per year, payable at Nations Bank Abercorn Branch. Due: June 10 Signed: Fred Nester -------------------------------------------------------------- What is the face value of the note?

Find the ordinary interest to the nearest cent. -$18,000 at 9% for 90 days

Find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent. -$91,900 at % for 84 days

Find the date due and the maturity value. Use banker's interest. -

Answer the question. -In your own words, define collateral. Give an example.

Find the exact number of days from the first date to the second. Assume that the second month is in the following year, and assume no leap years. -July 4 to January 23

Find the discount and proceeds on the simple discount note. -Face value: $13,230.00 Discount rate: 9.5% Time (days): 250

First, find the initial proceeds of the simple discount note. Then, find the discount period, the discount, and proceeds after discounting. -Date Loan Was Made: Jan. 25 Maturity Value: $10,000 Length of Loan: 90 days Rate: 10% Date of Discount: Mar. 23 Discount %: 10%

Solve the problem. -Henry Smith buys a $60,000 T-bill at a 6.9% discount for 30 weeks. Find the purchase price of the T-bill. (Assume 52 weeks per year.)

Find the date due and the maturity value. Use banker's interest. -

Find the discount and proceeds on the simple discount note. -Face value: $47,300.00 Discount rate: 9.75% Time (days): 100

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds. -Loan made: Apr 18 Face value: $400 Length of loan: 150 days Rate: 11% Date of discount: June 18

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day. -Leon Harding receives proceeds of $5,095 after signing a 180-day note for $5,400. Find the discount rate.

Find the date due and the maturity value. Use banker's interest. -

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest. -Universal Gallery earned $400 interest in 90 days from an investment that paid 5.5%. Find the amount initially invested.

Find the interest and maturity value for the loan. Round to the nearest cent. -$46,228 at 7.4% for 23 months

Answer the question. -When using a diagram to determine the proper formula for finding principal, interest, rate, and time, is it necessary to put the I on top and P, R, and T on the bottom? Explain.

Find the ordinary interest to the nearest cent. -$16,000 at % for 76 days

Answer the question about the promissory note given. ------------------------Promissory Note------------------------ March 12 Ninety days after date above, I promise to pay to the order of Thomas Ronney $720 dollars and no Cents with interest at 13% per year, payable at Nations Bank Abercorn Branch. Due: June 10 Signed: Fred Nester -------------------------------------------------------------- Who is the maker of the note?