Exam 6: Simple Interest

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

If money is worth 14 %, what payment on August 29 would be equal in value to a payment of $86,900 due on January 31 of the following year?

Avril owes Value Furniture $1,600, 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 3.25%. What amount should be acceptable to both parties?

What is meant by the "time value of money"?

Marika earned $40.07 interest at 2.5% on $5,000 invested on April 7. On what date did her investment mature?

Two payments of $5,000 60 days ago and $5,000 in 120 days are to be replaced by a payment now and $4,000 in 90 days. If interest is 3.2% annually, determine the amount to pay now, if the focal point is today.

Sumer put $10,000 in a 3-month term deposit at TD Canada Trust, earning a simple interest rate of 3.9% pa. After the 3 months, she invested the entire amount of the principal and interest from the first term deposit in a new 3-month term deposit earning the same rate of interest. How much interest did she earn on each term deposit? Why are the two interest amounts not equal?

Calculate the amount of interest that would be earned on an account of $216,000 if it earned 5.15% for 27 days.

Calculate the missing value:

Cecille placed $17,000 in a 270-day term deposit earning 4.25%. How much will the bank pay Cecille on the maturity date?

Two payments of $1,000 now and $3,000 in 6 months are to be replaced by $2,500 in 4 months and another in 9 months. If the rate of interest is 6.3% annually, determine the value of the final payment in 9 months if the focal point is in 9 months.

Eight months ago, Louise agreed to pay Thelma $750 and $950 six and twelve months, respectively, from the date of the agreement. With each payment, Louise agreed to pay interest on the respective principal at the rate of 9.5% from the date of the agreement. Louise failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Thelma be willing to accept if money can earn 7.75%?

A large retail store offers no payments, no interest for six months on all furniture and appliance purchases exceeding $1,500. If money can earn 3.5%, how much should the store accept as a payment today on furniture costing $1,850?

How many days will it take for an investment of $5,500 to earn $602.74 interest at 16%?

A deposit of $659 earns $15.10 interest at a rate of 4.5%. For how many days was this money on deposit?

How much interest could you earn over 2 months on an investment of $82,500 at 23.5%?

Calculate the missing value:

A late payment of $850.26 was considered equivalent to the originally scheduled payment of $830.00, allowing for interest at 9.9%. How many days late was the payment?

Calculate the combined equivalent value today of $500 due today and $300 due in three months. Assume that money can earn 95%.

Carly borrowed $2,500 from Clare on July 18 at an interest rate of 8%. On March 7 of the following year, Carly repaid the loan with interest. How much interest should she have paid?