Question 1

Answer the question.
-Explain how to find the effective interest rate for a simple discount note.

Accepted Answer

Answers will vary. One possibl

Question 2

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.
-September 19 to March 6

Accepted Answer

A) 168 days 
B) 172 days 
C) 138 days 
D) 167 days 
A) 168 days 
B) 172 days 
C) 138 days 
D) 167 days

Question 3

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest.
-Central Animal Hospital borrowed $8,300 for 75 days and paid $164.27 in interest. Find the rate of interest on the loan.

Accepted Answer

A) 10.0% 
B) 9.0% 
C) 9.7% 
D) 9.5% 
A) 10.0% 
B) 9.0% 
C) 9.7% 
D) 9.5%

Question 4

Find the maturity date and proceeds. Round to the nearest cent.
-Face value: $28,223 Discount rate: 11.5%
Date made: April 29
Time: 90 days
Maturity date:   Proceeds:

Accepted Answer

A) Maturity date: July 29
Proceeds: $27,422.70 
B) Maturity date: July 29
Proceeds: $27,411.59 
C) Maturity date: July 28
Proceeds: $27,411.59 
D) Maturity date: July 28
Proceeds: $27,422.70 
A) Maturity date: July 29
Proceeds: $27,422.70 
B) Maturity date: July 29
Proceeds: $27,411.59 
C) Maturity date: July 28
Proceeds: $27,411.59 
D) Maturity date: July 28
Proceeds: $27,422.70

Question 5

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

Accepted Answer

A) Date due: January 23
Maturity value: $16,553.97 
B) Date Due: January 23
Maturity value: $16,857.88 
C) Date Due: January 22
Maturity value: $18,006.54 
D) Date Due: January 22
Maturity value: $16,727.07 
A) Date due: January 23
Maturity value: $16,553.97 
B) Date Due: January 23
Maturity value: $16,857.88 
C) Date Due: January 22
Maturity value: $18,006.54 
D) Date Due: January 22
Maturity value: $16,727.07

Question 6

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest.
-Hank Wilkins invested $4,400 in a mutual fund containing bonds. Find the rate given that he earned $348.33 in 300 days.

Accepted Answer

A) 9.8% 
B) 9% 
C) 8.5% 
D) 9.5% 
A) 9.8% 
B) 9% 
C) 8.5% 
D) 9.5%

Question 7

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 $780 dollars and no
Cents with interest at 12% per year, payable at Nations Bank Abercorn Branch.
Due: June 10 Signed: Fred Nester
--------------------------------------------------------------
Who is the payee of the note?

Accepted Answer

A) Not given 
B) Nations Bank Abercorn Branch 
C) Thomas Ronney 
D) Fred Nester 
A) Not given 
B) Nations Bank Abercorn Branch 
C) Thomas Ronney 
D) Fred Nester

Question 8

Find the exact interest to the nearest cent.
-$8,500 at 7% for 125 days

Accepted Answer

A) $198.88 
B) $201.64 
C) $203.77 
D) $206.60 
A) $198.88 
B) $201.64 
C) $203.77 
D) $206.60

Question 9

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

Accepted Answer

A) Date Due: September 18
Maturity value: $9,359.43 
B) Date Due: September 18
Maturity value: $9,432.62 
C) Date Due: September 19
Maturity value: $9,899.22 
D) Date due: September 18
Maturity value: $9,538.02 
A) Date Due: September 18
Maturity value: $9,359.43 
B) Date Due: September 18
Maturity value: $9,432.62 
C) Date Due: September 19
Maturity value: $9,899.22 
D) Date due: September 18
Maturity value: $9,538.02

Question 10

Find the exact interest to the nearest cent.
-$99,000 at 7% for 135 days

Accepted Answer

A) $2,620.11 
B) $2,598.75 
C) $2,563.15 
D) $2,656.50 
A) $2,620.11 
B) $2,598.75 
C) $2,563.15 
D) $2,656.50

Question 11

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-Chris Owens bought a new computer system. To pay for the system, he borrowed $3,290 from the credit union at   interest for 110 days. Find the interest.

Accepted Answer

A) $102.93 
B) $102.46 
C) $339.97 
D) $103.88 
A) $102.93 
B) $102.46 
C) $339.97 
D) $103.88

Question 12

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds.
-Loan made: Oct 13
Face value: $21,800
Length of loan: 100 days
Rate: 10%
Date of discount: Jan 4

Accepted Answer

A) 17 days, $22,246.85 
B) 18 days, $21,687.97 
C) 18 days, $22,293.53 
D) 17 days, $21,641.29 
A) 17 days, $22,246.85 
B) 18 days, $21,687.97 
C) 18 days, $22,293.53 
D) 17 days, $21,641.29

Question 13

Find the rate. Round to the nearest tenth of a percent.
-Principal: $6,500 Time: 120 days
Interest: $249.17

Accepted Answer

A) 11.5% 
B) 7.6% 
C) 11.7% 
D) 3.8% 
A) 11.5% 
B) 7.6% 
C) 11.7% 
D) 3.8%

Question 14

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-On October 12, Marge Smith paid a state income tax payment, which was due on June 30. The penalty was 10% simple interest on her unpaid tax of $641. Find the penalty using exact interest.

Accepted Answer

A) $18.44 
B) $18.52 
C) $18.26 
D) $17.91 
A) $18.44 
B) $18.52 
C) $18.26 
D) $17.91

Question 15

Find the maturity value of the simple interest note.
-Face Value: $4,492
Length of Loan: 113 days
Rate: 10%

Accepted Answer

A) $4,634.98 
B) $4,629.84 
C) $4,633.00 
D) $4,632.30 
A) $4,634.98 
B) $4,629.84 
C) $4,633.00 
D) $4,632.30

Question 16

Answer the question.
-Acme Manufacturing Company needs to borrow $150,000.00 for 50 days to pay creditors. One way to get the money would be by way of a simple interest note with a rate of 8% and a principal of $150,000.00. At what discount rate would a simple discount note with proceeds of $150,000.00 have to be given to match the simple interest note? Round to the nearest ten-thousandths of a percent.

Accepted Answer

The answer of Answer the question.
-Acme Manufacturing Company needs to...

Question 17

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-Frank borrowed $85,633 from the bank at 9.4% for 170 days to expand his bike shop. Find the maturity value.

Accepted Answer

A) $89,487.69 
B) $89,434.15 
C) $89,161.55 
D) $89,602.62 
A) $89,487.69 
B) $89,434.15 
C) $89,161.55 
D) $89,602.62

Question 18

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. 19
Maturity Value: $20,000
Length of Loan: 60 days
Rate: 10%
Date of Discount: Mar. 7
Discount %: 10%

Accepted Answer

A) Initial Proceeds: $19,666.67;
Discount Period: 13 days;
Discount: $355.56;
Proceeds After Discount: $39,927.78 
B) Initial Proceeds: $39,666.67;
Discount Period: 15 days;
Discount: $344.44;
Proceeds After Discount $39,927.78 
C) Initial Proceeds: $19,666.67;
Discount Period: 13 days;
Discount: $72.22;
Proceeds After Discount: $19,927.78 
D) Initial Proceeds: $59,666.67;
Discount Period: 15 days;
Discount: $411.11;
Proceeds After Discount: $59,927.78 
A) Initial Proceeds: $19,666.67;
Discount Period: 13 days;
Discount: $355.56;
Proceeds After Discount: $39,927.78 
B) Initial Proceeds: $39,666.67;
Discount Period: 15 days;
Discount: $344.44;
Proceeds After Discount $39,927.78 
C) Initial Proceeds: $19,666.67;
Discount Period: 13 days;
Discount: $72.22;
Proceeds After Discount: $19,927.78 
D) Initial Proceeds: $59,666.67;
Discount Period: 15 days;
Discount: $411.11;
Proceeds After Discount: $59,927.78

Question 19

Find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent.
-$18,600 at 5% for 120 days

Accepted Answer

A) $2.75 
B) $310.00 
C) $5.75 
D) $4.25 
A) $2.75 
B) $310.00 
C) $5.75 
D) $4.25

Question 20

Find the proceeds to the nearest cent when the following is discounted.
-Maturity value: $97,600
Discount period: 30 days
Discount rate: 11%

Accepted Answer

A) $96,705.33 
B) $86,864.00 
C) $86,964.00 
D) $96,717.59 
A) $96,705.33 
B) $86,864.00 
C) $86,964.00 
D) $96,717.59

Answer the question. -Explain how to find the effective interest rate for a simple discount note.

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. -September 19 to March 6

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest. -Central Animal Hospital borrowed $8,300 for 75 days and paid $164.27 in interest. Find the rate of interest on the loan.

Find the maturity date and proceeds. Round to the nearest cent. -Face value: $28,223 Discount rate: 11.5% Date made: April 29 Time: 90 days Maturity date: Proceeds:

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. -Hank Wilkins invested $4,400 in a mutual fund containing bonds. Find the rate given that he earned $348.33 in 300 days.

Find the exact interest to the nearest cent. -$8,500 at 7% for 125 days

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

Find the exact interest to the nearest cent. -$99,000 at 7% for 135 days

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -Chris Owens bought a new computer system. To pay for the system, he borrowed $3,290 from the credit union at interest for 110 days. Find the interest.

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds. -Loan made: Oct 13 Face value: $21,800 Length of loan: 100 days Rate: 10% Date of discount: Jan 4

Find the rate. Round to the nearest tenth of a percent. -Principal: $6,500 Time: 120 days Interest: $249.17

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -On October 12, Marge Smith paid a state income tax payment, which was due on June 30. The penalty was 10% simple interest on her unpaid tax of $641. Find the penalty using exact interest.

Find the maturity value of the simple interest note. -Face Value: $4,492 Length of Loan: 113 days Rate: 10%

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -Frank borrowed $85,633 from the bank at 9.4% for 170 days to expand his bike shop. Find the maturity value.

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. 19 Maturity Value: $20,000 Length of Loan: 60 days Rate: 10% Date of Discount: Mar. 7 Discount %: 10%

Find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent. -$18,600 at 5% for 120 days

Find the proceeds to the nearest cent when the following is discounted. -Maturity value: $97,600 Discount period: 30 days Discount rate: 11%

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Exam 9: Simple Interest

Answer the question. -Explain how to find the effective interest rate for a simple discount note.

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. -September 19 to March 6

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest. -Central Animal Hospital borrowed $8,300 for 75 days and paid $164.27 in interest. Find the rate of interest on the loan.

Find the maturity date and proceeds. Round to the nearest cent. -Face value: $28,223 Discount rate: 11.5% Date made: April 29 Time: 90 days Maturity date: Proceeds:

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. -Hank Wilkins invested $4,400 in a mutual fund containing bonds. Find the rate given that he earned $348.33 in 300 days.

Find the exact interest to the nearest cent. -$8,500 at 7% for 125 days

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

Find the exact interest to the nearest cent. -$99,000 at 7% for 135 days

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -Chris Owens bought a new computer system. To pay for the system, he borrowed $3,290 from the credit union at interest for 110 days. Find the interest.

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds. -Loan made: Oct 13 Face value: $21,800 Length of loan: 100 days Rate: 10% Date of discount: Jan 4

Find the rate. Round to the nearest tenth of a percent. -Principal: $6,500 Time: 120 days Interest: $249.17

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -On October 12, Marge Smith paid a state income tax payment, which was due on June 30. The penalty was 10% simple interest on her unpaid tax of $641. Find the penalty using exact interest.

Find the maturity value of the simple interest note. -Face Value: $4,492 Length of Loan: 113 days Rate: 10%

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -Frank borrowed $85,633 from the bank at 9.4% for 170 days to expand his bike shop. Find the maturity value.

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. 19 Maturity Value: $20,000 Length of Loan: 60 days Rate: 10% Date of Discount: Mar. 7 Discount %: 10%

Find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent. -$18,600 at 5% for 120 days

Find the proceeds to the nearest cent when the following is discounted. -Maturity value: $97,600 Discount period: 30 days Discount rate: 11%

Whole Numbers and Decimals

Fractions

Percents

Equations and Formulas

Bank Services

Payroll

Mathematics of Buying

Mathematics of Selling

Compound Interest and Inflation

Annuities, Stocks, and Bonds

Business and Consumer Loans

Taxes and Insurance

Depreciation

Financial Statements and Ratios

Budgeting and Business Statistics

Filters