Exam 10: Interest

Using the present value table, calculate how much should be invested today to have $11,200 in 6 years at 8% interest compounded quarterly. n 0.5\% 1\% 1.5\% 2\% 3\% 4\% 5\% 21 0.90056010 0.81143017 0.73149795 0.65977582 0.53754928 0.43883360 0.35894236 22 0.89607971 0.80339621 0.72068763 0.64683904 0.52189250 0.42195539 0.34184987 23 0.89162160 0.79544179 0.71003708 0.63415592 0.50669175 0.40572633 0.32557131 24 0.88718567 0.78756613 0.69954392 0.62172149 0.49193374 0.39012147 0.31006791 25 0.88277181 0.77976844 0.68920583 0.60953087 0.47760557 0.37511680 0.29530277 26 0.87837991 0.77204796 0.67902052 0.59757928 0.46369473 0.36068923 0.28124073 27 0.87400986 0.76440392 0.66898574 0.58586204 0.45018906 0.34681657 0.26784832 28 0.86966155 0.75683557 0.65909925 0.57437455 0.43707675 0.33347747 0.25509364 29 0.86533488 0.74934215 0.64935887 0.56311231 0.42434636 0.32065141 0.24294632 30 0.86102973 0.74192292 0.63976243 0.55207089 0.41198676 0.30831867 0.23137745 31 0.85674600 0.73457715 0.63030781 0.54124597 0.39998715 0.29646026 0.22035947 32 0.85248358 0.72730411 0.62099292 0.53063330 0.38833703 0.28505794 0.20986617 33 0.84824237 0.72010307 0.61181568 0.52022873 0.37702625 0.27409417 0.19987254 34 0.84402226 0.71297334 0.60277407 0.51002817 0.36604490 0.26355209 0.19035480 35 0.83982314 0.70591420 0.59386608 0.50002761 0.35538340 0.25341547 0.18129029

What is the simple interest on a 10-month loan of $8,400 at 7.75%?

What is the compound interest earned at the end of a 2-year period on a loan with an original principal of $8,000 at 7% compounded annually?

What is the compound amount at the end of a 3-year period on a loan with an original principal of $12,750 at 11% compounded annually? Round to the nearest cent after every calculation.

What is the interest rate on a 240-day loan for $3,000 which accrues $220 in ordinary simple interest?

What is the maturity value of a 6-month loan for $2,500 at 13% ordinary simple interest?

The face value of a note is $1,250 with an interest rate of 13%. The time is based on 180 days in a 360-day year. The note has been discounted at 17% two months before the maturity of the note. What are the proceeds?

What is the compound amount if Alicia deposited $6,500 at 10% interest compounded quarterly for one year? Round to the nearest cent after each calculation.

Giovanni anticipates moving his business back to Italy in 5 years and estimates the cost to be $30,000. His bank recommends that he make an investment today that will pay 6% compounded quarterly to pay for the move. Using the present value table, calculate how much should be invested today to earn $30,000 in 5 years at 6% interest compounded quarterly. n 0.5\% 1\% 1.5\% 2\% 1 0.99502488 0.99009901 0.98522167 0.98039216 2 0.99007450 0.98029605 0.97066175 0.96116878 3 0.98514876 0.97059015 0.95631699 0.94232233 4 0.98024752 0.96098034 0.94218423 0.92384543 5 0.97537067 0.95146569 0.92826033 0.90573081 6 0.97051808 0.94204524 0.91454219 0.88797138 7 0.96568963 0.93271805 0.90102679 0.87056018 8 0.96088520 0.92348322 0.88771112 0.85349037 9 0.95610468 0.91433982 0.87459224 0.83675527 10 0.95134794 0.90528695 0.86166723 0.82034830 11 0.94661487 0.89632372 0.84893323 0.80426304 12 0.94190534 0.88744923 0.83638742 0.78849318 13 0.93721924 0.87866260 0.82402702 0.77303253 14 0.93255646 0.86996297 0.81184928 0.75787502 15 0.92791688 0.86134947 0.79985150 0.74301473 16 0.92330037 0.85282126 0.78803104 0.72844581 17 0.91870684 0.84437749 0.77638526 0.71416256 18 0.91413616 0.83601731 0.76491159 0.70015937 19 0.90958822 0.82773992 0.75360747 0.68643076 20 0.90506290 0.81954447 0.74247042 0.67297133 3\% 4\% 5\% 0.97087379 0.96153846 0.95238095 0.94259591 0.92455621 0.90702948 0.91514166 0.88899636 0.86383760 0.88848705 0.85480419 0.82270247 0.86260878 0.82192711 0.78352617 0.83748426 0.79031453 0.74621540 0.81309151 0.75991781 0.71068133 0.78940923 0.73069021 0.67683936 0.76641673 0.70258674 0.64460892 0.74409391 0.67556417 0.61391325 0.72242128 0.64958093 0.58467929 0.70137988 0.62459705 0.55683742 0.68095134 0.60057409 0.53032135 0.66111781 0.57747508 0.50506795 0.64186195 0.55526450 0.48101710 0.62316694 0.53390818 0.45811152 0.60501645 0.51337325 0.43629669 0.58739461 0.49362812 0.41552065 0.57028603 0.47464242 0.39573396 0.55367575 0.45638695 0.37688948

The date of a note is July 18 and interest is due on September 6. How many days is it from the initial date of the note to the day the interest is due?

The face value of a note is $7,500 with an interest rate of 12%. The time is based on 90 days in a 360-day year. The note has been discounted at 15% two months before the maturity of the note. How much is the discount and the proceeds?

What is the difference between the exact simple interest and the ordinary simple interest on a 200-day loan of $5,000 at 12%?

What is the number of days in a loan that extends from January 21 to June 20? Assume a nonleap year.

To calculate a bank discount, divide the maturity value by the discount percent.

What is the time on a $14,500 loan at 15% which accrues $4,350 in simple interest?

Use the compound interest table to calculate the maturity value on Jackson s principal of $7,250 at 12% compounded annually for five years. n 6\% 7\% 8\% 9\% 1 1.06000000 1.07000000 1.08000000 1.09000000 2 1.12360000 1.14490000 1.16640000 1.18810000 3 1.19101600 1.22504300 1.25971200 1.29502900 4 1.26247696 1.31079601 1.36048896 1.41158161 5 1.33822558 1.40255173 1.46932808 1.53862395 6 1.41851911 1.50073035 1.58687432 1.67710011 7 1.50363026 1.60578148 1.71382427 1.82803912 8 1.59384807 1.71818618 1.85093021 1.99256264 9 1.68947896 1.83845921 1.99900463 2.17189328 10 1.79084770 1.96715136 2.15892500 2.36736367 11 1.89829856 2.10485195 2.33163900 2.58042641 12 2.01219647 2.25219159 2.51817012 2.81266478 13 2.13292826 2.40984500 2.71962373 3.06580461 14 2.26090396 2.57853415 2.93719362 3.34172703 15 2.39655819 2.75903154 3.17216911 3.64248246 16 2.54035168 2.95216375 3.42594264 3.97030588 17 2.69277279 3.15881521 3.70001805 4.32763341 18 2.85433915 3.37993228 3.99601950 4.71712042 19 3.02559950 3.61652754 4.31570106 5.14166125 20 3.20713547 3.86968446 4.66095714 5.60441077 10\% 11\% 12\% 1.10000000 1.11000000 1.12000000 1.21000000 1.23210000 1.25440000 1.33100000 1.36763100 1.40492800 1.46410000 1.51807041 1.57351936 1.61051000 1.68505816 1.76234168 1.77156100 1.87041455 1.97382269 1.94871710 2.07616015 2.21068141 2.14358881 2.30453777 2.47596318 2.35794769 2.55803692 2.77307876 2.59374246 2.83942099 3.10584821 2.85311671 3.15175729 3.47854999 3.13842838 3.49845060 3.89597599 3.45227121 3.88328016 4.36349311 3.79749834 4.31044098 4.88711229 4.17724817 4.78458949 5.47356576 4.59497299 5.31089433 6.13039365 5.05447028 5.89509271 6.86604089 5.55991731 6.54355291 7.68996580 6.11590904 7.26334373 8.61276169 6.72749995 8.06231154 9.64629309

What is the simple interest on an 18-month loan for $12,000 at an interest rate of 8.25%?

What is the ordinary simple interest on a 225-day loan of $1,250 at 8.7%?

The _________ of a loan is the amount the borrower receives, which is the maturity value less the bank discount.

Kelly borrowed $3,000 with an interest rate of 7.2%. The time is based on 90 days in a 360-day year and the loan was taken out on August 19. The note has been discounted 14% on October 10. What are the proceeds?