Exam 6: Simple Interest

A department store is offering a television for $720 now or can pay $725 in 90 days. If interest is 10%, determine whether a customer should purchase now or in 90 days.

Three payments of $2,000 (originally due six months ago, today, and six months from now) have been renegotiated to two payments: $3,000 one month from now and a second payment due in four months. What must the second payment be for the replacement payments to be equivalent to the originally scheduled payments? Assume that money can earn an interest rate of 4%. Choose a focal date four months from now.

What principal will grow to $12,031.25 at 7.5% interest in 15 months?

Seth has a loan to repay. His terms are payments of $1,000 in six months and $1,000 in one year. He wants to settle the debt in three months. If the rate of interest is 6.5%, what single equivalent payment should Sam make?

Patrick is scheduled to receive $1480 in 60 days from now. How much should he accept today as an equivalent payment if his money can earn 6.75%?

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?

Calculate the missing value:

Anthony borrowed $7,500 on September 15 and agreed to repay the loan by three equal payments on the following November 10, December 30, and February 28. Calculate the payment size if the interest rate on the loan was 8.75%.

Mr. and Mrs. Chan are considering two offers on a building lot that they own in a nearby town. One is for $49,000, consisting of $10,000 down and the balance to be paid in a lump payment in eight months. The second is for $50,000, with $10,000 down and the balance to be paid in 1 year. What rate of return must money earn for Mr. and Mrs. Chan to be indifferent between the two offers?

Calculate the missing value:

Maurice borrowed $6,000 from Heidi on April 23 and agreed to make payments of $2,000 on June 1 and $2,000 on August 1, and to pay the balance on October 1. If simple interest at the rate of 10% was charged on the loan, what is the amount of the third payment?

An $18,000 payment due in 300 days is to be replaced by three equal payments now, in 150 days and 250 days. Determine the value of the payments if interest is 10.2% annually, and the focal point is now.

After 7 months how much interest would I have to pay on a loan of $300 if the rate of interest was 32%?

How much will be required on February 1 to pay off a $3,000 loan advanced on the previous September 30 if the variable interest rate began the interval at 10.7%, rose to 11.2% effective November 2, and then dropped back to 11% effective January 1?

David is supposed to pay $975 to Mark, but wishes to delay it for 6 months. Determine the amount Mark should expect in 6 months if the rate of interest is 4.75%

Bruce borrowed $6,000 from Darryl on November 23. When Bruce repaid the loan, Darryl charged $203.22 interest. If the rate of simple interest on the loan was 10.75%, on what date did Bruce repay the loan? Assume that February has 28 days.

How many days would it take for an investment of $9,000 to grow to $10,000 at 17%?

Barkley's Bookkeeper 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 money would I have to invest at 9 ½% to earn interest of $9,200 per month?

Marta borrowed $1,750 from Jasper on November 15, 2014, and agreed to repay the debt with simple interest at the rate of 7.4% on June 3, 2015. How much interest was owed on June 3?