Deck 7: Simple Interest

Question 1

Compute the amount of interest on $875.00 at 11.5% p.a. from May 29, 2013 to August 13, 2013.

Answer 1

P = 875.00; r = 0.115
Time period May 29, 2013, to August 13, 2013 = 225 - 149 = 76 days
I = (875)(0.115) = $20.95

Question 2

If Inez is charged an interest of $42.95 on a loan of $950.00 for seven months, calculate the rate of interest charged on the loan.

Answer 2

I = 42.95; P = 950; t = r = = 0.0775 = 7.75%

Question 3

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

Answer 3

P = 250; r = 0.0825
Time period March 30, 2014, to October 28, 2014 = 212 days
I = (250)(.0825) = $11.98

Question 4

Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at 9.0%.

Question 5

Determine the exact time between January 20, 2012 and May 10, 2012 by counting days.

Question 6

What principal will earn $219.89 interest at 11.25% p.a. from November 16, 2013 to February 7, 2014?

Question 7

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.

Question 8

Find the amount of interest on $635.00 at 6.5% p.a. from October 2, 2015 to August 4, 2016.

Question 9

What principal will earn $59.99 interest at 7.75% p.a. from February 4, 2014 to July 17, 2014?

Question 10

What principal will earn $67.52 at 6.75% in 158 days?

Question 11

Determine the deposit that must be made to earn $49.27 in 325 days at 6%.

Question 12

Compute the amount of interest for $500.00 at 8.75% from June 30 to December 31.

Question 13

Determine the exact time between January 21, 2014 and September 13, 2014 by counting days.

Question 14

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

Question 15

Determine the date represented by 100 days after March 1, 2012.

Question 16

A bank pays an interest of 4.5% for a three month term deposit. Calculate the amount that Stacy must invest to earn an interest of $100.00.

Question 17

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

Question 18

Compute the amount of interest for $679.43 at 6.25% from May 11 to January 20.

Question 19

Calculate the amount of interest that will be charged on $7000.00 borrowed for five months at 5.5%.

Question 20

Determine the deposit that must be made to earn $85 in 7 months at 10.5%.

Question 21

Determine the number of days it will take $500.00 to earn $20.00 at %.

Question 22

Compute the accumulated value of $10 000.00 at 9% after six months.

Question 23

Find the maturity value of $832.00 invested at 8.8% from May 20, 2013, to November 23, 2013.

Question 24

In how many months will $4100.00 earn $192.29 interest at 7.5%?

Question 25

What rate of interest is paid if the interest on a loan of $7300.00 is $692.71 from June 11, 2014 to April 2, 2015?

Question 26

An investment of $12 000.00 earns an interest of $480.00. Calculate the time in months if the interest rate is 6%.

Question 27

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

Question 28

What rate of interest is paid if the interest on a loan of $15 000.00 is $2000.00 from January 31, 2014 to May 31, 2014?

Question 29

Find the maturity value of $1080.00 invested at 3.65% from July 24, 2014 to December 21, 2014.

Question 30

In how many months will $3500 grow to $4845.94 at 7.25% p.a.?

Question 31

On June 12, 2013, Frank James opened a low interest line of credit at his bank, with interest at 4.5% p.a. He used this line of credit immediately to pay $5300 of the tuition fee. On what date did Frank James honour the line of credit if he ended up paying $186.20 in interest?

Question 32

How many months will it take $639 to grow to $795 at 8.45% p.a.?

Question 33

What rate of interest is paid if the interest on a loan of $3500.00 is $99.06 from November 14, 2013 to May 20, 2014?

Question 34

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

Question 35

In how many months will $5000 grow to $6000 at 9.5% p.a.?

Question 36

Daniel's credit card statement last month showed $560 in cash advances and $5.25 in interest charges. The interest rate on the statement was 18.8%. For how many days was Daniel charged interest?

Question 37

What rate of interest is required for $940.48 to earn $42.49 interest from September 30, 2013, to March 4, 2014?

Question 38

In how many months will $9100.00 grow to $9818.75 at 6.41% p.a.?

Question 39

Determine the number of days it will take $478.00 to earn $17.09 at %.

Question 40

At what rate of interest must a principal of $1535.00 be invested to earn interest of $75.46 in 235 days?

Question 41

What is the amount to which $7250.00 will grow at 7.75% p.a. in 3 months?

Question 42

What sum of money will accumulate to $539.04 in 97 days at 11.4%?

Question 43

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

Question 44

What principal will have a maturity value of $100 000 at 5% p.a. in 18 months?

Question 45

Determine the amount of money that would have to be invested at 5 % to accumulate to $10 000.00, 91 days after the investment date.

Question 46

Leo wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term. Help Leo to investigate his options.
a)How much will Leo receive after one year if he invests at the one-year rate?
b)How much will Leo receive after one-year if he invests for six-months at a time at 3.5% each time?
c)What would the one-year rate have to be to yield the same amount of interest as the investment described in part b)?

Question 47

What is the present value of $9700.00 due at 6.25% p.a. in 89 days?

Question 48

Compute the accumulated value of $6500.00 at 8.5% after eleven months.

Question 49

An appliance store advertises a stove for $747.50 with nothing down, no payments and no interest for six months. Determine the cash value the store would be willing to accept if on a six-month investment, it can earn an interest of 4%.

Question 50

A loan payment of $1700 was due 60 days ago and another payment of $1200 is due 45 days from now. What single payment 90 days from now will pay off the two obligation if interest is to be 14% and the agreed focal date is 90 days from now?

Question 51

What principal will have a maturity value of $61 500.00 at 6.5% p.a. in 17 months?

Question 52

What principal will have a maturity value of $40 000.00 at 5.25% p.a. in 4 years?

Question 53

Debt payments of $800.00 due now and $1400.00 due in five months are to be repaid by a payment of $1000.00 in three months and a final payment in eight months. Calculate the size of the final payment if interest is 6%.

Question 54

What sum of money will accumulate to $1426.80 in eight months at 7.78%?

Question 55

What principal will have a maturity value of $12 000.00 at 6.25% p.a. in 3 months?

Question 56

Tamiko invested $1500.00 at a bank for eight months at an interest rate of 4 %. Calculate the maturity value of the investment.

Question 57

On April 24, 2012, Rebecca purchased a government-guaranteed short-term investment maturing on
July 5, 2012. How much did Rebecca pay for the investment if she will receive $6000 on the maturity date and interest is 2.75%?

Question 58

Debt payments of $1610.00 due today, $725.00 due in 101 days and $670.00 due in 296 days respectively are to be combined into a single payment to be made 170 days from now. What is that single payment, if money is worth 9.5% p.a. and the agreed focal date is 170 days from now?

Question 59

Find the present value of a debt of $760.00 ninety-five days before it is due if money is worth 6.25%.

Question 60

What sum of money will accumulate to $3700.00 at 14.75% p.a. in 451 days?

Question 61

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.

Question 62

A loan of $10 000.00 is to be repaid in four equal payments due in three months, six months, nine months, and one year respectively after the date of the loan. Calculate the size of the equal payments if interest is 8.5%.

Question 63

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%?

Question 64

A debt of $1410.00 due 6 months ago and a second debt of $1815.00 due in 4 months with interest at 6.16% p.a. are to be settled by two equal payments due now and 9 months from now respectively. Find the size of the equal payments at 7.37% p.a. with the agreed focal date now.

Question 65

Debt payments of $1170.00 due two months ago and $1243.00 due today respectively are to be repaid by a payment of $1505.00 in one month and the balance in four months. If money is worth 8.4% p.a. and the agreed focal date is four months from now, what is the size of the final payment?

Question 66

A debt of $7120 is to be settled by two equal payments due today, and three years from now respectively. Determine the size of the equal payments if money is worth 8.73% and the agreed focal day is today.

Question 67

A loan of $1000 taken out on January 1 requires equal payments on February 1,March 1, and April 1. If the focal date is april 1, what is the size of the equal payments at 6.0%?

Question 68

Debts of $1480.00 due four months ago and $1385.00 due in one month are to be settled by two equal payments due now and nine months from now respectively. Find the size of the equal payments at 12% p.a. with the agreed focal date now.

Question 69

Payments of $5100 each due in five, ten, and fourteen months from now are to be settled by three equal payments due today, seven months from now, and eleven months from now. What is the size of the equal payments if interest is 8.75% and the agreed focal date is today?

Question 70

Debt obligations of $700.00 due three months ago and $1810.00 due in one month are to be repaid by a payment of $1200.00 today and the balance in six months. What is the size of the final payment if interest is 7.75% and the agreed focal date is one month from now?

Question 71

Debt payments of $1925.00 due today, $510.00 due in 87 days, and $674.00 due in 337 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth 8.65% p.a. and the agreed focal date is 115 days from now?

Question 72

Payments of $1430 due one year ago and $1175 due with interest of 6% in nine months are to be settled by three equal payments due today, seven months from now, and one year from now at 7.5%. Determine the size of the equal payments if the agreed focal date is one year from today.

Question 73

Debt payments of $2130.00 and $1794.00 are due five months from now and nine months from now respectively. What single payment is required to pay off the debt today if interest is 6.36%?

Question 74

Three debts, the first for $1720 due four months ago, the second for $1315 due in 5 months, and the third for $1640 due in 7 months, are to be paid by a single payment today. How much is the single payment if money is worth 7.5% p.a. and the agreed focal date is today?

Question 75

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

A)72 days
B)74 days
C)73 days
D)71 days
E)75 days

Question 76

A loan of $4100 is to be repaid in three equal installments due 110, 197, and 311 days respectively after the date of the loan. If the focal date is the date of the loan and interest is 6.89% p.a., find the size of the installments.

Question 77

Two obligations of $835 each, due 90 days ago and 35 days ago respectively, are to be settled by two equal payments to be made today and 65 days from now respectively. If interest allowed is 8.75% and the agreed focal date is today, what is the size of the equal payments?

Question 78

Debt payments of $500.00, $1000.00, $1500.00 are due on March 1, May 1, and December 1 of the same year. If interest is 8% calculate the single payment on August 1 of the same year that would replace the three payments.

Question 79

The exact number of days between January 25, 2012 and March 25, 2012 is?

A)59 days
B)60 days
C)61 days
D)62 days
E)63 days

Question 80

Debt payments of $1000.00 due today, $500.00 due in 90 days, and $500.00 due in 120 days are to be combined into a single payment to be made 120 days from today. What is that single payment if money is worth 9.00% p.a. and the agreed focal date is 120 days from today?