Exam 6: Simple Interest

After 4 months how much interest would I have to pay on a loan of $500 if the rate of interest was 22%?

How many months would it take to earn $1,650 on a deposit of $44,000 at 7 ½%?

A karate club offers two payment plans for a one-year membership. The first is a cash price of $475. The second is a payment of $250 today, and $250 in six months. If the interest rate charged by the club is 8%, which option has the greater economic value?

Morgan loaned $3,100 to Rolf at a simple interest rate of 0.65% per month. What was the term of loan if the total interest came to $221.65?

What will be the maturity value in 15 months of a $4,500 loan at a simple interest rate of 11.9%?

Robert placed $7,000 in a 10-month term deposit paying 6.25%. How much will the term deposit be worth when it matures?

An investment of $ 19,250 grew to $20,000 between March 26 and October 10. What simple annual interest rate did the investment earn?

Two payments of $1,300 and $1,800 were scheduled to be paid five months ago and three months from now, respectively. The $1,300 payment has not yet been made. What single payment at a focal date one month from now would be equivalent to the two scheduled payments if money can earn 4.5 %?

Compare the economic values of two options given an annual rate of 6.6%. Option 1 - $900 in 90 days and $1,200 in 120 days. Option 2 - $850 in 240 days and $1,390 in 320 days. Given the following information, choose the best option.

If $7,500 is to be paid now, what amount would be equivalent 8 months earlier given an interest rate of 3.88% per year?

Albert loaned $850,000 to Batman on March 17. On January 9 of the following year, Batman paid to Albert the $49,000 of interest that had accumulated on the debt up to that time. What simple rate of interest was Albert charging on this loan?

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

Compare the economic values of two options given an annual rate of 4.5%. Option 1 - $1,100 in 1 month and $850 in 3 months. Option 2 - $1,050 in 6 months and $925 in 9 months. Given the following information, choose the best option.

Calculate the simple interest rate at which one can earn $2,200 per day interest on an investment of $8,500,000.

Calculate the missing values:

Calculate the missing value:

Three payments are scheduled as follows: $1,200 is due today, $900 is due in five months, and $1,500 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 5.9%? Use ten months from now as the focal date.

If money if worth $1,150 now and $1,205 in 240 days, determine the rate of return that an investor would be indifferent between the two options.

Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

Mike is supposed to pay $750 to Sarah, but wishes to delay it for 48 days. Determine the amount Sarah should expect in 48 days if the rate of interest is 6.55%