Question 1

Find the time (in days). Round to the nearest day.
-Principal: $5,000 Rate: 8%
Interest: $167

Accepted Answer

A) 225 days 
B) 42 days 
C) 150 days 
D) 152 days 
A) 225 days 
B) 42 days 
C) 150 days 
D) 152 days

Question 2

Answer the question.
-Under what circumstances would a business consider discounting a note?

Accepted Answer

A business would consider disc

Question 3

Find the maturity value of the simple interest note.
-

Accepted Answer

A) $4,504.42 
B) $4,509.92 
C) $4,501.79 
D) $4,507.13 
A) $4,504.42 
B) $4,509.92 
C) $4,501.79 
D) $4,507.13

Question 4

Solve the problem.
-A holder of a $3,000, 10%, 120-day note dated June 2 decides to sell the note at a discount. The note is sold on July 23 at a discount of 12%. Find the proceeds.

Accepted Answer

A) $3,028.70 
B) $2,987.18 
C) $3,040.58 
D) $3,027.67 
A) $3,028.70 
B) $2,987.18 
C) $3,040.58 
D) $3,027.67

Question 5

Find the rate. Round to the nearest tenth of a percent.
-Principal: $8,000
Time: 90 days
Interest: $140.00

Accepted Answer

A) 34.6% 
B) 7.0% 
C) 7.1% 
D) 1.8% 
A) 34.6% 
B) 7.0% 
C) 7.1% 
D) 1.8%

Question 6

Find the maturity date and proceeds. Round to the nearest cent.
-Face value: $8,207 Discount rate: 12%
Date made: June 28
Time: 90 days
Maturity date:   Proceeds:

Accepted Answer

A) Maturity date: September 28
Proceeds: $5,778.63 
B) Maturity date: September 28
Proceeds: $7,960.79 
C) Maturity date: September 26
Proceeds: $5,778.63 
D) Maturity date: September 26
Proceeds: $7,960.79 
A) Maturity date: September 28
Proceeds: $5,778.63 
B) Maturity date: September 28
Proceeds: $7,960.79 
C) Maturity date: September 26
Proceeds: $5,778.63 
D) Maturity date: September 26
Proceeds: $7,960.79

Question 7

Solve the problem.
-Tech Support Associates accepts a $5,320, 7%, 240-day note for service equipment. The note is dated Sep 8. On Oct 29 the firm discounts the note at a bank, at a 9% discount rate. Find the
Proceeds.

Accepted Answer

A) $5,363.63 
B) $5,305.17 
C) $5,303.77 
D) $5,254.90 
A) $5,363.63 
B) $5,305.17 
C) $5,303.77 
D) $5,254.90

Question 8

Solve the problem.
-Central Building Company borrowed $18,722 on a 94-day simple interest note to expand their business. The note carried an interest rate of 7.9%. Find the maturity value of the note.

Accepted Answer

A) $19,113.63 
B) $19,108.19 
C) $18,760.09 
D) $18,335.81 
A) $19,113.63 
B) $19,108.19 
C) $18,760.09 
D) $18,335.81

Question 9

Find the discount period.
-Loan made: July 11
Length of loan: 150 days
Date of discount: Sep 10

Accepted Answer

A) 89 days 
B) 61 days 
C) 99 days 
D) 51 days 
A) 89 days 
B) 61 days 
C) 99 days 
D) 51 days

Question 10

Find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent.
-$64,600 at 5% for 270 days

Accepted Answer

A) $23.68 
B) $43.68 
C) $2,422.50 
D) $33.18 
A) $23.68 
B) $43.68 
C) $2,422.50 
D) $33.18

Question 11

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-Continental Tools bought a new computer system. To pay for the system, they borrowed $28,120 from the bank at   % interest for 125 days. Find the interest.

Accepted Answer

A) $956.86 
B) $943.75 
C) $2,755.76 
D) $949.21 
A) $956.86 
B) $943.75 
C) $2,755.76 
D) $949.21

Question 12

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds.
-Loan made: Jan 2
Face value: $9,000
Length of loan: 120 days
Rate: 11%
Date of discount: Mar 2

Accepted Answer

A) 60 days, $9,158.95 
B) 61 days, $8,762.86 
C) 61 days, $9,092.86 
D) 61 days, $8,828.95 
A) 60 days, $9,158.95 
B) 61 days, $8,762.86 
C) 61 days, $9,092.86 
D) 61 days, $8,828.95

Question 13

Find the interest and maturity value for the loan. Round to the nearest cent.
-$19,480 at 10% for 2.7 years

Accepted Answer

A) $5,064.80; $24,544.80 
B) $2,768.21; $22,248.21 
C) $5,259.60; $24,739.60 
D) $7,207.60; $26,687.60 
A) $5,064.80; $24,544.80 
B) $2,768.21; $22,248.21 
C) $5,259.60; $24,739.60 
D) $7,207.60; $26,687.60

Question 14

Answer the question.
-You are going to borrow $71,500.00 for 72 days. You are to be loaned the money at an interest rate of 9%, and you are given the option to choose exact or ordinary interest. Which would you choose? Explain.

Accepted Answer

Exact inte

Find the time (in days). Round to the nearest day. -Principal: $5,000 Rate: 8% Interest: $167

Answer the question. -Under what circumstances would a business consider discounting a note?

Find the maturity value of the simple interest note. -

Solve the problem. -A holder of a $3,000, 10%, 120-day note dated June 2 decides to sell the note at a discount. The note is sold on July 23 at a discount of 12%. Find the proceeds.

Find the rate. Round to the nearest tenth of a percent. -Principal: $8,000 Time: 90 days Interest: $140.00

Find the maturity date and proceeds. Round to the nearest cent. -Face value: $8,207 Discount rate: 12% Date made: June 28 Time: 90 days Maturity date: Proceeds:

Solve the problem. -Tech Support Associates accepts a $5,320, 7%, 240-day note for service equipment. The note is dated Sep 8. On Oct 29 the firm discounts the note at a bank, at a 9% discount rate. Find the Proceeds.

Solve the problem. -Central Building Company borrowed $18,722 on a 94-day simple interest note to expand their business. The note carried an interest rate of 7.9%. Find the maturity value of the note.

Find the discount period. -Loan made: July 11 Length of loan: 150 days Date of discount: Sep 10

Find the amount by which the ordinary interest is larger than the exact interest. Round to the nearest cent. -$64,600 at 5% for 270 days

Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated. -Continental Tools bought a new computer system. To pay for the system, they borrowed $28,120 from the bank at % interest for 125 days. Find the interest.

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds. -Loan made: Jan 2 Face value: $9,000 Length of loan: 120 days Rate: 11% Date of discount: Mar 2

Find the interest and maturity value for the loan. Round to the nearest cent. -$19,480 at 10% for 2.7 years

Answer the question. -You are going to borrow $71,500.00 for 72 days. You are to be loaned the money at an interest rate of 9%, and you are given the option to choose exact or ordinary interest. Which would you choose? Explain.

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Exam 9: Simple Interest