Exam 6: Simple Interest

Calculate the missing value:

Calculate the missing value:

During its 50-50 Sale, Marpole Furniture will sell its merchandise for 50% down, with the balance payable in six months. No interest is charged for the first si months. What 100% cash price should Marpole accept on a $1845 chesterfield and chair set if Marpole can earn a rate of return of 10.75% on its funds?

$8000 was borrowed at an interest rate of 11½ %. Calculate the amount of each payment if the loan was paid off by three equal payments made 30, 90, and 150 days after the date of the loan.

A $3000 loan on March 1 was repaid by payments of $500 on March 31, $1000 on June 15, and a final payment on August 31. What was the third payment if the interest rate on the loan was 8¼ %?

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:

Calculate the simple interest rate at which one can earn $2,200 per day interest on an investment of $8,500,000.

Calculate the missing value:

How much interest will be earned on $5000 in 5 months if the interest rate is 5.5%?

Jonas recently purchased a one-year membership at Gold's Gym. He can add a second year to the membership now for $1215, or wait 11 months and pay the regular single-year price of $1280. Which is the better economic alternative if money is worth 8.5%? At what rate would the alternatives be equivalent?

What simple annual interest rate would you need to earn $2,000 interest in 147 days on an investment of $49,000?

Calculate the missing value:

Determine the amount of (simple) interest that would be earned over eight months at 26% on an investment of $43,500.

To settle a $570 invoice, Anna can pay $560 now or the full amount 60 days later. Which alternative should she choose if money can earn 10¾ %? What rate would money have to earn for Anna to be indifferent between the alternatives?

Anthony borrowed $7500 on September 15 and agreed to repay the loan by three equal payments on the following November 10, December 30, and February 28. Calculate the payment size if the interest rate on the loan was 11¾ %. Use September 15 as the focal date.

What principal will grow to $12,031.25 at 7.5% interest in 15 months?

Two equal payments, 50 days and 150 days after the date of the loan, paid off a $3000 loan at 10¼ %. What was the amount of each payment?

At what simple annual interest rate would $1,896 grow to $2000 in 300 days?

Rasheed wishes to postpone for 90 days the payment of $450 that he owes to Roxanne. If money now earns 6.75%, what amount can he reasonably expect to pay at the later date?

How much interest was paid on a $1500 loan for seven months at an annual interest rate of 9.5%?