Exam 6: Simple Interest

How much interest will be earned on $5,000 in 5 months if the annual simple interest rate is 1.5%?

On March 14 Lisa invested in a 200-day term deposit. On what date will it mature?

Dominion Contracting invested surplus funds in term deposits. All were chosen to mature on April 1 when the firm intends to purchase a new grader. What total amount will be available from the maturing term deposits on April 1 (of a leap year)?

What will be the maturity value of $3,300 invested at an interest rate of 2.75% in 15 months?

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:

How long would it take for a $45,000 investment to earn $6,000 interest at 17.5%?

Payments of $6,000 six months ago and $3,000 one month ago are to be replaced by $5,000 in 9 months and another payment today. If interest is 4.2% annually, determine the price of the payment today.

Jacques received the proceeds from an inheritance on March 15. He wants to set aside, in a term deposit on March 16, an amount sufficient to provide a $45,000 down payment for the purchase of a home on November 1. If the current interest rate on 181-day to 270-day deposits is 3.75%, what amount should he place in the term deposit?

Under what circumstance is $100 paid today equivalent to $110 paid 1 year from now?

Penny invested $4,500 on October 28 at a floating rate of interest that initially stood at 6.3%. Effective December 2, the rate dropped by ½% and then it declined another ¼% effective February 27. What total amount of principal plus interest will Penny receive when the investment matures on March 15? Assume that the new year is a leap year.

Megan was charged $124.83 interest on her bank loan for the period September 18 to October 18. If the rate of interest on her loan was 8.25%, what was the outstanding principal balance on the loan during the period?

$12,800 was invested in a 237 day term deposit earning 3.75%. What was its maturity value?

What simple interest rate was used if Rocco charged Squirrel $350 interest on a loan of $2,000 for 41 days?

$8,000 due now is to be replaced by three equal payments in 2, 6 and 9 months from today. If interest is 6.75% annually, determine the value of the payments.

Evelyn put $15,000 into a 90-day term deposit at Laurentian Bank paying a simple interest rate of 3.2%. When the term deposit matured, she invested the entire amount of the principal and interest from the first term deposit into a new 90-day term deposit earning the same rate of interest. What total amount of interest did she earn on both term deposits?

What amount, seven months from now, is equivalent to $1215 today if money can be invested to earn 4.5%?

Calculate the amount of interest owed on the repayment date:

Susan wants a 120-day extension on a payment of $2,000. If she and her creditor agree that money can now earn 6%, what amount should she pay at the later date?

What payment, 174 days from now, is equivalent to $5230 paid today? Assume that money is worth 5.25% per annum.

Two equal payments, 50 days and 150 days after the date of the loan, paid off a $3000 loan at 8.25%. What was the amount of each payment?