Exam 6: Simple Interest

If money is worth 14 %, what payment on August 29 would be equal in value to a payment of $86,900 due on January 31 of the following year?

Calculate the missing value:

Sumer put $10,000 in a 3-month term deposit at Canada Trust, earning a simple interest rate of 3.9%. After the 3 months, she invested the entire amount of the principal and interest from the first term deposit in a new 3-month term deposit earning the same rate of interest. How much interest did she earn on each term deposit? Why are the two interest amounts not equal?

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?

Calculate the missing value:

A contract was signed eight months ago requiring the payment of $13,000 plus interest at 8% after one year. What two equal payments made today and four months from today are equivalent to the original contract? Assume that money is now worth 5%. Use four months from today as the focal date.

Calculate the maturity value of an investment of $22,500 after 9 months at 13.45%.

How much money would I have to invest at 6 ½ % to earn interest of $4,500 per month?

A $10,000 90-day term deposit earns 4.5% interest. How much will the depositor have at maturity?

What annual rate of interest was earned if a $15,000 investment for five months earned $546.88 in interest?

How much money would I have to invest at 9 ½ % to earn interest of $9,200 per month?

Nine months ago, Muriel agreed to pay Aisha $1200 and $800 on dates 6 and 12 months, respectively, from the date of the agreement. With each payment Muriel agreed to pay interest at the rate of 8½ % from the date of the agreement. Muriel failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Aisha be willing to accept if money can earn 6¾ %?

Dominion Contracting invested surplus funds in term deposits. All were chosen to mature on April 1 when the firm intends to purchase a new grader. What total amount will be available from the maturing term deposits on April 1 (of a leap year)?

A five-month term deposit of $10,000 at the Scotiabank earned $175 in interest. What annual rate of simple interest did the deposit earn?

If $3702.40 earned $212.45 interest from September 17, to March 11 of the following year, what rate of interest was earned?

$5000 was borrowed at 9½ % on March 1. On April 1 and June 1, the borrower made payments of $2000 each. What payment was required on August 1 to pay off the loan's balance?

What amount received on January 13 is equivalent to $1000 received on the preceding August 12 if money can earn 9.5%?

How much interest accrued from November 30, 2010 to March 4, 2011 on a $7350 loan at 7.5%?

Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

On April 3 Artie invested $75,000 and by October 27 he had earned interest of $10,500. What simple interest rate had he earned?