Exam 13: Simple Interest

In each problem, (1) compute the actual exact interest (365-day year) and (2) estimate the interest by rounding the principal to the nearest hundred dollars. For each estimate, assume that a year has 360 days and use the given suggestion to create a shortcut. Round answers to the nearest cent.​ ​

​In each problem, (1) compute the actual exact interest (365-day year) and (2) estimate the interest by rounding the principal to the nearest hundred dollars. For each estimate, assume that a year has 360 days and use the given suggestion to create a shortcut. ​

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.​ ​

Devon Gillies is a college student who is working as a laborer for a landscape company during the summer. Before the first paycheck, the owner loaned Devon $1,000 for 30 days at 5% ordinary simple interest. Compute the total amount that Devon will need to repay the owner when he gets paid after 30 days. (Use a 360-day year.)​

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​ ​

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​ ​

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.​ ​

Norma Nowak has a hair salon in the shopping center. Norma borrowed $4,250 to buy additional equipment for her salon. The loan was for 200 days at 9.1% exact simple interest. How much interest must Norma pay when the 200 days have elapsed? (Use a 365-day year.)

A loan officer approved a $12,000 loan to a small business for 90 days. If the ordinary simple interest rate was 9%, compute the interest earned on the loan. (Use a 360-day year.)

Oliver Douglas opened a repair shop for computer printers. Most of his loans were long term, but he got a short term loan of $2,645 for office supplies at a rate of 8.25% exact simple interest (365-day year). On the due date, Oliver repaid a total of $2,680.87. What was the length of the loan period? (To the nearest day.)

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​ ​

Leslie loaned $2,000 to her daughter for four years. She charged her daughter only 4% ordinary simple interest. If the daughter repays all interest and principal on time, how much money will Leslie collect? (Use a 360-day year.)​

Rick Morrow is willing to lend modest amounts of money to his employees for short terms at 9% ordinary simple interest (360-day year). In May, one employee borrowed some money for 30 days. In June, she repaid the loan plus $6.30 interest. Compute the amount that the employee had borrowed.

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent. ​

Willie White borrowed $2,485 for 105 days at 8% exact simple interest (365-day year). Compute the total amount that Willie must repay at the end of the loan period.

Nelda Brown borrowed $1,420 for 120 days to buy some new furniture for her office. At the due date, Nelda repaid a total of $1,448. What was the exact simple interest rate (365-day year) that she paid on the loan? (To nearest 1/10 of a percent.)

Alexander Carver loaned $3,000 to Bonnie Humphrey for a vacation trip. Compute the loan period if Alexander charged 10% exact simple interest (365-day year) and Bonnie repaid a total of $3,082.19. (To the nearest day.)

Compute the exact interest (365-day year) and the total amount of the loan for the following problems. Round answers to the nearest cent.​ ​

David Brown borrowed $2,225 at 7% ordinary simple interest for 190 days. Compute the total amount that David will have to pay on the due date. (Use a 360-day year.)​

Melody Diaper Service is a local company that launders and delivers baby diapers. They need to borrow $6,200 to buy some new washing and drying equipment. Their loan is for 180 days at 8% exact simple interest. Compute the interest that Melody will need to pay for this loan. (Use a 365-day year.)