Question 1

Find the discount period.
-Loan made: Aug 17
Length of loan: 240 days
Date of discount: Dec 11

Accepted Answer

A) 115 days 
B) 124 days 
C) 125 days 
D) 116 days 
A) 115 days 
B) 124 days 
C) 125 days 
D) 116 days

Question 2

Find the discount period.
-Loan made: April 22
Length of loan: 180 days
Date of discount: July 28

Accepted Answer

A) 84 days 
B) 97 days 
C) 83 days 
D) 96 days 
A) 84 days 
B) 97 days 
C) 83 days 
D) 96 days

Question 3

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-HarbourTown Marina purchased four boat lifts for raising and lowering large boats into the water. The boat lifts cost $59,700 each. They borrowed the money from the bank for 240 days at 8%. Find
The maturity value.

Accepted Answer

A) $251,536.00 
B) $64,476.00 
C) $257,904.00 
D) $62,884.00 
A) $251,536.00 
B) $64,476.00 
C) $257,904.00 
D) $62,884.00

Question 4

Find the principal. Round to the nearest cent.
-Rate: 4%
Time: 150 days
Interest: $63.77

Accepted Answer

A) $382.62 
B) $6,377.00 
C) $3,876.20 
D) $3,826.20 
A) $382.62 
B) $6,377.00 
C) $3,876.20 
D) $3,826.20

Question 5

Find the interest and maturity value for the loan. Round to the nearest cent.
-$8,850 at 11% for 1.3 years

Accepted Answer

A) $2,239.05; $11,089.05 
B) $1,265.55; $10,115.55 
C) $666.08; $9,516.08 
D) $1,168.20; $10,018.20 
A) $2,239.05; $11,089.05 
B) $1,265.55; $10,115.55 
C) $666.08; $9,516.08 
D) $1,168.20; $10,018.20

Question 6

Solve the problem.
-Jane Johnson buys a $30,000 T-bill at a 5.5% discount for 26 weeks. Find the purchase price of the T-bill. (Assume 52 weeks per year.)

Accepted Answer

A) $29,175.00 
B) $28,350.00 
C) $29,587.50 
D) $29,092.50 
A) $29,175.00 
B) $28,350.00 
C) $29,587.50 
D) $29,092.50

Question 7

Find the maturity value of the simple interest note.
-Face Value: $5,912
Length of Loan: 224 days
Rate: 12%

Accepted Answer

A) $5,470.57 
B) $6,353.43 
C) $6,359.65 
D) $5,955.54 
A) $5,470.57 
B) $6,353.43 
C) $6,359.65 
D) $5,955.54

Question 8

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day.
-Mark Golden needs $9,360.04 to pay for remodeling work. His bank loans money at a discount rate of 10% for 150 days. Find the face value of a loan so he will have $9,360.04.

Accepted Answer

A) $9,761.18 
B) $10,296.04 
C) $9,360.04 
D) $9,767.00 
A) $9,761.18 
B) $10,296.04 
C) $9,360.04 
D) $9,767.00

Question 9

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

Accepted Answer

A) Date Due: April 21
Maturity value: $16,972.20 
B) Date Due: April 20
Maturity value: $16,729.74 
C) Date Due: April 21
Maturity value: $16,535.77 
D) Date due: April 20
Maturity value: $16,616.59 
A) Date Due: April 21
Maturity value: $16,972.20 
B) Date Due: April 20
Maturity value: $16,729.74 
C) Date Due: April 21
Maturity value: $16,535.77 
D) Date due: April 20
Maturity value: $16,616.59

Question 10

Answer the question.
-What is a simple discount note? Explain in your own words by way of a specific example.

Accepted Answer

Answers will vary. Suppose you take out

Question 11

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-Bob's BBQ signed a note with a face value of $18,500.00 on September 11. The note is for 90 days and carries an interest rate of 9%. Find the due date and the maturity value of the note.

Accepted Answer

A) December 10, $18,916.25 
B) December 12, $18,500.00 
C) December 11, $19,055.00 
D) December 11, $20,165.00 
A) December 10, $18,916.25 
B) December 12, $18,500.00 
C) December 11, $19,055.00 
D) December 11, $20,165.00

Question 12

Find the discount period.
-Loan made: Oct 27
Length of loan: 210 days
Date of discount: Jan 25

Accepted Answer

A) 90 days 
B) 91 days 
C) 119 days 
D) 120 days 
A) 90 days 
B) 91 days 
C) 119 days 
D) 120 days

Question 13

Solve the problem.
-Jerry Jones buys a $120,000 T-bill at a 5.8% discount for 30 weeks. Find the interest earned on the T-bill. (Assume 52 weeks per year.)

Accepted Answer

A) $4,416.92 
B) $2,007.69 
C) $4,015.38 
D) $8,030.77 
A) $4,416.92 
B) $2,007.69 
C) $4,015.38 
D) $8,030.77

Question 14

Find the rate. Round to the nearest tenth of a percent.
-Principal: $1,075
Time: 18 days
Interest: $4.62

Accepted Answer

A) 8.7% 
B) 7.7% 
C) 8.6% 
D) 4.3% 
A) 8.7% 
B) 7.7% 
C) 8.6% 
D) 4.3%

Question 15

Find the proceeds to the nearest cent when the following is discounted.
-Maturity value: $88,400 Discount period: 89 days
Discount rate: 9%

Accepted Answer

A) $80,544.00 
B) $86,433.10 
C) $86,460.04 
D) $80,444.00 
A) $80,544.00 
B) $86,433.10 
C) $86,460.04 
D) $80,444.00

Question 16

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest.
-House of Realty earned $420.00 interest on a $18,000 deposit in an account paying 4%. Find the number of days that the funds were on deposit.

Accepted Answer

A) 58 days 
B) 213 days 
C) 315 days 
D) 210 days 
A) 58 days 
B) 213 days 
C) 315 days 
D) 210 days

Question 17

Find the principal. Round to the nearest cent.
-Rate: 6% Time: 210 days
Interest: $48.03

Accepted Answer

A) $4,803.00 
B) $1,372.29 
C) $1,422.29 
D) $137.23 
A) $4,803.00 
B) $1,372.29 
C) $1,422.29 
D) $137.23

Question 18

Find the principal. Round to the nearest cent.
-Rate: 7.5% Time: 150 days
Interest: $92.20

Accepted Answer

A) $295.04 
B) $2,950.40 
C) $29.50 
D) $2,991.38 
A) $295.04 
B) $2,950.40 
C) $29.50 
D) $2,991.38

Question 19

Find the proceeds to the nearest cent when the following is discounted.
-Maturity value: $6,700 Discount period: 84 days
Discount rate: 11%

Accepted Answer

A) $6,528.03 
B) $5,963.00 
C) $6,530.39 
D) $6,063.00 
A) $6,528.03 
B) $5,963.00 
C) $6,530.39 
D) $6,063.00

Question 20

Solve the problem.
-On June 7, Donaldson's Trucking accepts a $3,200 note in settlement of a bill. The note is for 180 days at 8% interest. Donaldson sells the note at a 10% discount rate on July 29. Find the proceeds.

Accepted Answer

A) $3,208.75 
B) $3,209.67 
C) $3,233.34 
D) $3,174.01 
A) $3,208.75 
B) $3,209.67 
C) $3,233.34 
D) $3,174.01

Find the discount period. -Loan made: Aug 17 Length of loan: 240 days Date of discount: Dec 11

Find the discount period. -Loan made: April 22 Length of loan: 180 days Date of discount: July 28

Find the principal. Round to the nearest cent. -Rate: 4% Time: 150 days Interest: $63.77

Find the interest and maturity value for the loan. Round to the nearest cent. -$8,850 at 11% for 1.3 years

Solve the problem. -Jane Johnson buys a $30,000 T-bill at a 5.5% discount for 26 weeks. Find the purchase price of the T-bill. (Assume 52 weeks per year.)

Find the maturity value of the simple interest note. -Face Value: $5,912 Length of Loan: 224 days Rate: 12%

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

Answer the question. -What is a simple discount note? Explain in your own words by way of a specific example.

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -Bob's BBQ signed a note with a face value of $18,500.00 on September 11. The note is for 90 days and carries an interest rate of 9%. Find the due date and the maturity value of the note.

Find the discount period. -Loan made: Oct 27 Length of loan: 210 days Date of discount: Jan 25

Solve the problem. -Jerry Jones buys a $120,000 T-bill at a 5.8% discount for 30 weeks. Find the interest earned on the T-bill. (Assume 52 weeks per year.)

Find the rate. Round to the nearest tenth of a percent. -Principal: $1,075 Time: 18 days Interest: $4.62

Find the proceeds to the nearest cent when the following is discounted. -Maturity value: $88,400 Discount period: 89 days Discount rate: 9%

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest. -House of Realty earned $420.00 interest on a $18,000 deposit in an account paying 4%. Find the number of days that the funds were on deposit.

Find the principal. Round to the nearest cent. -Rate: 6% Time: 210 days Interest: $48.03

Find the principal. Round to the nearest cent. -Rate: 7.5% Time: 150 days Interest: $92.20

Find the proceeds to the nearest cent when the following is discounted. -Maturity value: $6,700 Discount period: 84 days Discount rate: 11%

Solve the problem. -On June 7, Donaldson's Trucking accepts a $3,200 note in settlement of a bill. The note is for 180 days at 8% interest. Donaldson sells the note at a 10% discount rate on July 29. Find the proceeds.

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Exam 9: Simple Interest