Exam 6: Simple Interest

Payments of $1000 and $7500 were originally scheduled to be paid five months ago and four months from now, respectively. The first payment was not made. What payment two months from now is equivalent to the scheduled payment if money can earn 6¼ %?

How much interest could you earn over 2 months on an investment of $82,500 at 23.5%?

Calculate the missing value:

A $9000 loan is to be repaid in three equal payments occurring 60, 180, and 300 days, respectively, after the date of the loan. Calculate the size of these payments if the interest rate on the loan is 7¼ %. Use the loan date as the focal date.

Compare the economic values of $1480 today vs. $1515 in 150 days. Assume money can earn 6.75%. At what rate would the two amounts be equivalent?

Calculate the missing value:

What is the equivalent value, 30 days from now, of a payment stream comprised of $2500 due in 70 days and $4000 due in 200 days? Assume money can earn 6¼ %.

An investment of $19,250 grew to $20,000 between March 26 and October 10. What simple annual interest rate did the investment earn?

What was the principal amount of a loan at 9½ % if $67.78 of interest accrued from October 28, 2010 to April 14, 2011?

A $7760 investment earning 6¼ % matured at $8083.33. What was the term (in months) of the investment?

An early payment of $4574.73 was accepted instead of a scheduled payment of $4850.00, allowing for interest at the rate of 8¾ %. How many days early was the payment?

A $14,400 loan taken out on May 21, 2010 was repaid with interest at 11¼ % per annum on July 19, 2011. How much interest was paid?

Bruce borrowed $6000 from Darryl on November 23. When Bruce repaid the loan, Darryl charged $203.22 interest. If the rate of simple interest on the loan was 10¾ %, on what date did Bruce repay the loan? Assume that February has 28 days.

A principal of $790 grew to $1000 in 14 months. What annual rate of simple interest was earned?

What annual simple interest rate would be needed for $55,000 to grow to $60,000 over a term of 295 days?

$7348.25 was the amount required to pay off a loan after 14 months. If the loan was at 8¼ % per annum simple interest, how much of the total was interest?

On May 27, Kristina made an investment that earned an interest rate of 9.4%. By November 6 the investment's value had increased to $77,000. What amount of interest had Kristina earned?

Calculate the missing value:

How much interest could you earn over 7 months on an investment of $49,000 at 14.75%?

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: