Exam 6: Simple Interest

Marta borrowed $1750 from Jasper on November 15, 2004, and agreed to repay the debt with simple interest at the rate of 7.4% on June 3, 2005. How much interest was owed on June 3?

The interest rate on $27,000 borrowed on October 16, 2011 was 8.7%. How much interest was owed on the April 15, 2012 repayment date?

How much money would one have to invest today at 18.75% in order to have a total of $20,000 in 9 months?

Calculate the amount of interest that would be earned on an account of $59,500 at 7.2% for 133 days.

If $450,000 is invested on June 3 at 7.75%, what will be the value of the investment on December 11?

$890 interest was charged on $8900 borrowed on a simple interest basis for eight months. What was the interest rate per month on the loan?

On what date was a $1000 loan granted if the interest accrued as at November 16, 2011 was $50.05? The interest rate on the loan was 7¼ %.

Raimo borrowed $750 from Chris on October 30 and agreed to repay the debt with simple interest at the rate of 12.3% on May 10. How much interest was owed on May 10? Assume that February has 28 days.

If money can be invested at 0.6% per month, which has the greater economic value: $5230 on a specific date or $5500 exactly five months later? At what rate (per month) would the two amounts be economically equivalent?

A payment stream consists of $1000 payable today and $1500 payable in five months. What is the equivalent value of the payment stream two months from now if money is worth 5.5%?

Calculate the missing value:

Calculate the maturity value of a loan of $6,875 after 239 days at 18.3%.

What amount paid on September 24 is equivalent to $1000 paid on the following December 1 if money can earn 5%?

A loan of $4000 at 13% is to be repaid by three equal payments due four, six, and eight months after the date on which the money was advanced. Calculate the amount of each payment. Use the loan date as the focal date.

Sharon's $9000 term deposit matured on March 16, 2008. Based on a simple interest rate of 3.75%, she received $110.96 in interest. On what date did she originally make the term deposit?

The cash balance in Amalia's account with her stockbroker earns interest on the daily balance at an annual rate of 4%. Accrued interest is credited to her account every six months-on June 30 and December 31. As a result of the purchase and sale of securities from time to time, the account's balance changed as follows: What interest was credited to Amalia's account on June 30? The brokerage firm includes interest for both January 1 and June 30 in the June 30 payment. Assume that February had 28 days.

The amount required to settle a $680 debt after 300 days was $730.30. What rate of interest was charged on the debt?

Calculate the missing value:

A loan of $3300 at 9¼ % simple interest was made on March 27. On what date was it repaid if the interest cost was $137.99?

The snow tires that you are planning to buy next October 1 at the regular price of $107.50 each are advertised at $89.95 in a spring clearance special that will end on the preceding March 25. What annual rate of simple interest will you earn if you "invest" in the new snow tires at the sale price on March 25 instead of waiting until October 1 to buy them at the regular price?