Exam 7: Simple Interest

Determine the exact time between January 30, 2014 and May 20, 2014 by counting days.

Misra purchases an airplane ticket to Calgary today on the airline's early bird sale for $559, instead of buying it for $599 four months from now. Had he not bought the ticket today, he would have invested the money in bonds yielding 9% return. What is his true savings?

Leons advertises a bed room set for $1495 with nothing down, no payments and no interest for 6 months. What cash price should the store be willing to accept if, on a 6 month investment, Leons can earn a rate of 9%?

A loan of $3325.00 is to be repaid by three equal payments due in 102 days, 157 days and 189 days respectively. Determine the size of the equal payments at 12.15% p.a. with a focal date of today.

What principal will have a future value of $7325 at a 1.1% rate in 350 days?

A loan of $1825 taken out on March 10 requires equal payments on April 30, June 19, and August 3, and a final payment of $700 on September 30. If the focal date is September 30, what is the size of the equal payments at 8.6%?

At what rate of interest will $1087.00 earn $63.84 in 264 days?

Compute the amount of interest on $250.00 at 8.25% p.a. from March 30, 2014 to October 28, 2014.

Principal of $259 000 on a house is mortgaged at a rate of 3.7% amortized over a period of 25 years resulting into a total interest of $137 178.49. The bank also offers simple interest for the customers, who do not want to pay compound interest. If bank wishes to earn the same amount of interest over the period of 25 years, what rate will the bank charge to its customers, if the loan is paid in equal annual installments?

Sally put $9500 in term deposit on May 22. It matured on September 4 at $9588.82. What interest rate did she earn on the term deposit?

Alex borrowed $7500 to buy a car. If interest is charged on a loan at 8.5%, how much interest would he have to pay in 120 days.

The interest earned on a $6000 investment was $240. What was the term in months if the interest rate was 6%?

Genevieve won $42 016 from the lottery and deposited all of it into an RESP account for her children that had an interest rate of 0.7% for a 1-year term. What is the maturity value of the deposit?

The exact number of days between January 5 and March 17 during the next leap year is?

Eighty days ago, Emma was supposed to pay $870 to Regina. She also will owe Regina $1230 in 120 days. However, Emma is unable to pay these amounts; so instead, Regina has agreed to accept two equal payments due after three months and six months, respectively. If the interest rate is 1.25%, determine the size of the quarterly payments.

Dion is supposed to pay Kristy $3500 on April 20, but delays the payment until July 1. What amount should Dion expect to pay on July 1, if Kristy can earn 8.25% on a low-risk investment?

What payment is required to pay off a loan of $1750.00 at 7.25% fourteen months later?

Calculate the amount of interest if $2000.00 is invested at 6% for 200 days.

What principal will earn $77.14 interest at 6.65% p.a. for 182 days?

What is the present value of $41 230.00 due in nine months if interest is 11.1%?