Exam 6: Simple Interest

A $3000 loan at 11% was made on March 1. Two payments of $1000 each were made on May 1 and June

Avril owes Value Furniture $1600, which is scheduled to be paid on August 15. Avril has surplus funds on June 15 and will settle the debt early if Value Furniture will make an adjustment reflecting the current short-term interest rate of 7.25%. What amount should be acceptable to both parties?

What should be the amount of each payment if a $2500 loan at 8¾ % is to be repaid by three equal payments due two months, four months, and seven months following the date of the loan?

Payments of $100,000 and $150,000 are due to be paid in 45 days and 75 days respectively. If money is worth 7.3%, what is the combined economic value today of the two payments?

Sheldrick Contracting owes Western Equipment $60,000 payable on June 14. In late April, Sheldrick has surplus cash and wants to settle its debt to Western Equipment, if Western will agree to a fair reduction reflecting the current 3.6% interest rate that short-term funds can earn. What amount on April 29 should Sheldrick propose to pay to Western?

Barkley's Bookeeper is accounting for a cheque that was written for $29,674. It represents full payment of principal plus interest for a loan that was taken out for 128 days at 8.5%. How much of the $29,674 was interest?

How much interest could you earn, over 5 months on an investment of $94,000 at 17.75%?

What is the time interval (in months) separating equivalent payments of $3500.00 and $3439.80 if money is worth 5¼ % per annum?

If $20,000 was invested 82 days ago at an interest rate of 13.75%, what would be the value of the investment today?

What payment, 174 days from now, is equivalent to $5230 paid today? Assume that money is worth 9.25% per annum.

The interest rate on an $859.50 debt was 10¼ %. For how many months was the loan outstanding if it was settled with a payment of $907.22?

A $25,000 investment earned 1.1% per month simple interest for a three-month term. What total amount of interest was earned?

How much interest would one earn over 200 days on an investment of $95,000 at an interest rate of 14%?

What amount should be accepted as equivalent, 60 days before an obligation of $1480 is due, if money can earn 6¾ %?

Umberto borrowed $7500 from Delores on November 7, 2008. When Umberto repaid the loan, Delores charged him $190.02 interest. If the rate of simple interest on the loan was 6¾ %, on what date did Umberto repay the loan?

Calculate the equivalent value of the scheduled payments if money can earn the rate of return specified in the last column. Assume that any payments due before today have been missed.

What amount, seven months from now, is equivalent to $1215 today if money can be invested to earn 8½ %?

How much interest will be earned on $8000 over a period of four months if the interest rate is 6.5%?

What amount on January 23 is equivalent to $1000 on the preceding August 18 if money can earn 6½ %?