Question 1

Find the exact interest to the nearest cent.
-$4,900 at 5% for 189 days

Accepted Answer

A) $128.63 
B) $126.86 
C) $12.69 
D) $12.86 
A) $128.63 
B) $126.86 
C) $12.69 
D) $12.86

Question 2

Find the interest and maturity value for the loan. Round to the nearest cent.
-$10,593 at 6.9% for 9 months

Accepted Answer

A) $552.79; $11,145.79 
B) $548.19; $11,141.19 
C) $609.10; $11,202.10 
D) $487.28; $11,080.28 
A) $552.79; $11,145.79 
B) $548.19; $11,141.19 
C) $609.10; $11,202.10 
D) $487.28; $11,080.28

Question 3

Find the time (in days). Round to the nearest day.
-Principal: $17,000
Rate: 9.5%
Interest: $942.08

Accepted Answer

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

Question 4

Find the principal. Round to the nearest cent.
-Rate: 8%
Time: 80 days
Interest: $1,564.26

Accepted Answer

A) $88,039.63 
B) $87,989.63 
C) $8,798.96 
D) $80 
A) $88,039.63 
B) $87,989.63 
C) $8,798.96 
D) $80

Question 5

Solve the problem.
-A holder of a $21,600, 8%, 180-day note dated June 1 decides to sell the note at a discount. The note is sold on July 21 at a discount of 10%. Find the proceeds.

Accepted Answer

A) $21,646.56 
B) $21,421.47 
C) $21,815.04 
D) $21,652.80 
A) $21,646.56 
B) $21,421.47 
C) $21,815.04 
D) $21,652.80

Question 6

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 $710 dollars and no
Cents with interest at 12% per year, payable at Nations Bank Abercorn Branch.
Due: June 10 Signed: Fred Nester
--------------------------------------------------------------
What is the term of the loan?

Accepted Answer

A) June 10 
B) 90 days 
C) 12% per year 
D) $710 dollars and no cents 
A) June 10 
B) 90 days 
C) 12% per year 
D) $710 dollars and no cents

Question 7

Find the time (in days). Round to the nearest day.
-Principal: $2,019
Rate: 8.5%
Interest: $64.83

Accepted Answer

A) 136 days 
B) 38 days 
C) 138 days 
D) 204 days 
A) 136 days 
B) 38 days 
C) 138 days 
D) 204 days

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.
-A note with a face value of $3,300 was discounted at 7%. If the discount was $58, find the length of the loan in days.

Accepted Answer

A) 90 days 
B) 60 days 
C) 92 days 
D) 120 days 
A) 90 days 
B) 60 days 
C) 92 days 
D) 120 days

Question 9

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day.
-Sam Peters signs a $4,500 note. His bank charges a 10% discount rate. Find the effective rate charged by the bank if the note is for 9 months.

Accepted Answer

A) 9.7% 
B) 10.9% 
C) 10% 
D) 10.8% 
A) 9.7% 
B) 10.9% 
C) 10% 
D) 10.8%

Question 10

Solve the problem.
-Twin City Freezer accepts a note with face value of $6,920 on June 1. The note is for 90 days at 8% interest. The note is discounted on July 24 at 9%. Find the proceeds.

Accepted Answer

A) $6,993.11 
B) $6,991.35 
C) $7,000.36 
D) $6,912.36 
A) $6,993.11 
B) $6,991.35 
C) $7,000.36 
D) $6,912.36

Question 11

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds.
-Loan made: Jan 7
Face value: $2,600
Length of loan: 120 days
Rate: 12%
Date of discount: Mar 7

Accepted Answer

A) 61 days, $2,545.92 
B) 61 days, $2,531.27 
C) 61 days, $2,635.27 
D) 60 days, $2,649.92 
A) 61 days, $2,545.92 
B) 61 days, $2,531.27 
C) 61 days, $2,635.27 
D) 60 days, $2,649.92

Question 12

Find the discount and proceeds on the simple discount note.
-Face value: $5,000.00 Discount rate: 11%
Time (days): 60

Accepted Answer

A) Discount: $91.67
Proceeds: $4,908.33 
B) Discount: $0.00
Proceeds: $5,000.00 
C) Discount: $550.00
Proceeds: $4,450.00 
D) Discount: $90.41
Proceeds: $4,909.59 
A) Discount: $91.67
Proceeds: $4,908.33 
B) Discount: $0.00
Proceeds: $5,000.00 
C) Discount: $550.00
Proceeds: $4,450.00 
D) Discount: $90.41
Proceeds: $4,909.59

Question 13

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

Accepted Answer

A) Date Due: March 19
Maturity value: $9.35 
B) Date Due: March 20
Maturity value: $9.81 
C) Date Due: March 20
Maturity value: $9.21 
D) Date due: March 19
Maturity value: $9.46 
A) Date Due: March 19
Maturity value: $9.35 
B) Date Due: March 20
Maturity value: $9.81 
C) Date Due: March 20
Maturity value: $9.21 
D) Date due: March 19
Maturity value: $9.46

Question 14

Find the discount period.
-Loan made: Sep 10 Length of loan: 320 days
Date of discount: Mar 6

Accepted Answer

A) 177 days 
B) 174 days 
C) 143 days 
D) 146 days 
A) 177 days 
B) 174 days 
C) 143 days 
D) 146 days

Question 15

Find the rate. Round to the nearest tenth of a percent.
-Principal: $35,000 Time: 60 days
Interest: $548

Accepted Answer

A) 9.4% 
B) 1.6% 
C) 9.5% 
D) 16.0% 
A) 9.4% 
B) 1.6% 
C) 9.5% 
D) 16.0%

Question 16

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.
-November 3 to May 7

Accepted Answer

A) 185 days 
B) 215 days 
C) 184 days 
D) 155 days 
A) 185 days 
B) 215 days 
C) 184 days 
D) 155 days

Question 17

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day.
-A $2,000 note is signed, for 210 days, at a discount rate of 11%. Find the proceeds.

Accepted Answer

A) $1,780.00 
B) $1,873.42 
C) $2,000.00 
D) $1,871.67 
A) $1,780.00 
B) $1,873.42 
C) $2,000.00 
D) $1,871.67

Question 18

Find the maturity date and proceeds. Round to the nearest cent.
-Face value: $4,500
Discount rate: 9%
Date made: May 30
Time: 90 days
Maturity date:   Proceeds:

Accepted Answer

A) Maturity date: August 28
Proceeds: $4,601.25 
B) Maturity date: August 28
Proceeds: $4,398.75 
C) Maturity date: August 30
Proceeds: $4,601.25 
D) Maturity date: August 30
Proceeds: $4,398.75 
A) Maturity date: August 28
Proceeds: $4,601.25 
B) Maturity date: August 28
Proceeds: $4,398.75 
C) Maturity date: August 30
Proceeds: $4,601.25 
D) Maturity date: August 30
Proceeds: $4,398.75

Question 19

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.
-August 15 to April 6

Accepted Answer

A) 233 days 
B) 265 days 
C) 234 days 
D) 134 days 
A) 233 days 
B) 265 days 
C) 234 days 
D) 134 days

Question 20

Find the exact interest to the nearest cent.
-$4,880 at   for 175 days

Accepted Answer

A) $317.20 
B) $140.38 
C) $154.19 
D) $152.08 
A) $317.20 
B) $140.38 
C) $154.19 
D) $152.08

Find the exact interest to the nearest cent. -$4,900 at 5% for 189 days

Find the interest and maturity value for the loan. Round to the nearest cent. -$10,593 at 6.9% for 9 months

Find the time (in days). Round to the nearest day. -Principal: $17,000 Rate: 9.5% Interest: $942.08

Find the principal. Round to the nearest cent. -Rate: 8% Time: 80 days Interest: $1,564.26

Solve the problem. -A holder of a $21,600, 8%, 180-day note dated June 1 decides to sell the note at a discount. The note is sold on July 21 at a discount of 10%. Find the proceeds.

Find the time (in days). Round to the nearest day. -Principal: $2,019 Rate: 8.5% Interest: $64.83

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day. -A note with a face value of $3,300 was discounted at 7%. If the discount was $58, find the length of the loan in days.

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day. -Sam Peters signs a $4,500 note. His bank charges a 10% discount rate. Find the effective rate charged by the bank if the note is for 9 months.

Solve the problem. -Twin City Freezer accepts a note with face value of $6,920 on June 1. The note is for 90 days at 8% interest. The note is discounted on July 24 at 9%. Find the proceeds.

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds. -Loan made: Jan 7 Face value: $2,600 Length of loan: 120 days Rate: 12% Date of discount: Mar 7

Find the discount and proceeds on the simple discount note. -Face value: $5,000.00 Discount rate: 11% Time (days): 60

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

Find the discount period. -Loan made: Sep 10 Length of loan: 320 days Date of discount: Mar 6

Find the rate. Round to the nearest tenth of a percent. -Principal: $35,000 Time: 60 days Interest: $548

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. -November 3 to May 7

Solve the problem. Round rates to the nearest tenth of a percent, dollar amounts to the nearest cent, and time to the nearest day. -A $2,000 note is signed, for 210 days, at a discount rate of 11%. Find the proceeds.

Find the maturity date and proceeds. Round to the nearest cent. -Face value: $4,500 Discount rate: 9% Date made: May 30 Time: 90 days Maturity date: Proceeds:

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. -August 15 to April 6

Find the exact interest to the nearest cent. -$4,880 at for 175 days

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Exam 9: Simple Interest