Deck 13: Simple Interest

Question 1

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.​
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Answer 1

Question 2

Compute (a) the ordinary interest, (b) the exact interest and (c) their difference. Round answers to the nearest cent.​
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Answer 2

Question 3

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​
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Answer 3

Question 4

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​
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Question 5

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.​
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Question 6

Compute the simple interest. If the time is given in months, let one month be 1/12 of a year. Round answers to the nearest cent.​
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Question 7

Compute the exact interest (365-day year) and the total amount of the loan for the following problems. Round answers to the nearest cent.​
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Question 8

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.​
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Question 9

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.
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Question 10

Compute the exact interest (365-day year) and the total amount of the loan for the following problems. Round answers to the nearest cent.​
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Question 11

Compute the simple interest. If the time is given in months, let one month be 1/12 of a year. Round answers to the nearest cent.​
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Question 12

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.
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Question 13

Compute the exact interest (365-day year) and the total amount of the loan for the following problems. Round answers to the nearest cent.​
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Question 14

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​
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Question 15

Compute the simple interest. If the time is given in months, let one month be 1/12 of a year. Round answers to the nearest cent.​
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Question 16

Compute the ordinary interest (360-day year) and the total amount of the loan in the following problems. Round answers to the nearest cent.​
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Question 17

Compute (a) the ordinary interest, (b) the exact interest, and (c) their difference. Round answers to the nearest cent.​
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Question 18

​Compute the simple interest. If the time is given in months, let one month be 1/12 of a year. Round answers to the nearest cent.
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Question 19

​Compute the exact interest (365-day year) and the total amount of the loan for the following problems. Round answers to the nearest cent.
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Question 20

Compute the exact interest (365-day year) and the total amount of the loan for the following problems. Round answers to the nearest cent.
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Question 21

Norma Nowak has a hair salon in the shopping center. Norma borrowed $4,250 to buy additional equipment for her salon. The loan was for 200 days at 9.1% exact simple interest. How much interest must Norma pay when the 200 days have elapsed? (Use a 365-day year.)

Question 22

In each problem, (1) compute the actual exact interest (365-day year) and (2) estimate the interest by rounding the principal to the nearest hundred dollars. For each estimate, assume that a year has 360 days and use the given suggestion to create a shortcut. Round answers to the nearest cent.​
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Question 23

Cortez Sheet Metal borrowed $12,250 to make its quarterly payroll tax payment to the government. The loan was for 45 days at a 8% exact simple interest rate. Compute the amount of interest that it paid for this loan. (Use a 365-day year.)

Question 24

Devon Gillies is a college student who is working as a laborer for a landscape company during the summer. Before the first paycheck, the owner loaned Devon $1,000 for 30 days at 5% ordinary simple interest. Compute the total amount that Devon will need to repay the owner when he gets paid after 30 days. (Use a 360-day year.)​

Question 25

Jorge Garcia was to lend $5,250 to his cousin at 3% ordinary simple interest for 240 days. If the cousin repays everything as agreed upon, what total will Jorge receive? (Use a 360-day year.)

Question 26

In each problem, (1) compute the actual exact interest (365-day year) and (2) estimate the interest by rounding the principal to the nearest hundred dollars. For each estimate, assume that a year has 360 days and use the given suggestion to create a shortcut.​
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Question 27

Edison Automotive Machining Company needs to borrow money to repair a broken milling machine. The company can borrow $80,000 for 300 days at 7% exact simple interest. Compute the total amount that Edison will need to repay. (Use a 365-day year.)

Question 28

Walter Fong borrowed $1,175 at 8% ordinary simple interest for 180 days. Compute the total amount that Walter will have to pay on the due date. (Use a 360-day year.)​

Question 29

Deanna and her sister Molly borrowed $1,600 from their mother. Their mother only charged 3% ordinary simple interest and the loan was for two years. Compute the total interest and principal that the sisters need to repay their mother. (Use a 360-day year.)

Question 30

​In each problem, (1) compute the actual exact interest (365-day year) and (2) estimate the interest by rounding the principal to the nearest hundred dollars. For each estimate, assume that a year has 360 days and use the given suggestion to create a shortcut.
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Question 31

In each problem, (1) compute the actual exact interest (365-day year) and (2) estimate the interest by rounding the principal to the nearest hundred dollars. For each estimate, assume that a year has 360 days and use the given suggestion to create a shortcut. Round answers to the nearest cent.​
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Question 32

A loan officer approved a $12,000 loan to a small business for 90 days. If the ordinary simple interest rate was 9%, compute the interest earned on the loan. (Use a 360-day year.)

Question 33

Andrew Merrill, owns a mobile sandwich and pretzel stand. Andrew borrows $5,200 for 135 days at 9% ordinary simple interest. What total will Andrew need to repay for both interest and principal? (Use a 360-day year.)

Question 34

Charles Clothing Company needs to borrow money to repair its broken sewing machines. It can borrow $90,000 for 270 days at 8% exact simple interest. Compute the total amount that Charles will need to repay. (Use a 365-day year.)

Question 35

For a few years now, Karen Williamson and her sister have operated an office services company that caters to small businesses in town. Recently, they got an opportunity to buy a used high-speed copy machine for $8,500, which they considered an excellent price. To make the purchase quickly, they agreed to pay $1,000 now and borrow $7,500 from the seller for 60 days at 9.5% exact simple interest. What is the total amount that they will need to repay the seller at the end of the 60 days? (Use a 365-day year.)

Question 36

An investor borrowed $10,000 to buy shares of stock of a chain of retail gift stores. The loan was for 120 days at 9% ordinary simple interest. Compute the interest that the investor will pay on the due date. (Use a 360-day year.)​

Question 37

David Brown borrowed $2,225 at 7% ordinary simple interest for 190 days. Compute the total amount that David will have to pay on the due date. (Use a 360-day year.)​

Question 38

Richard Davis, owns a butcher and grilling supply store. Richard borrows $7,500 for 150 days at 8% ordinary simple interest. What total will Richard need to repay for both interest and principal? (Use a 360-day year.)​

Question 39

Leslie loaned $2,000 to her daughter for four years. She charged her daughter only 4% ordinary simple interest. If the daughter repays all interest and principal on time, how much money will Leslie collect? (Use a 360-day year.)​

Question 40

David Riley owns a five-year-old computer game business. Because of slack business, David needs to borrow $25,000. Compute the interest fee if David gets the loan for 120 days at 12% ordinary simple interest. (Use a 360-day year.)

Question 41

Wendy Ellison needed to borrow $2,500 to pay her son's school tuition. She borrowed the money from her credit union at 8% ordinary simple interest (360-day year) and, repaid a total of $2,600 at the end of the loan period. Compute the length of the loan period. (To the nearest day.)

Question 42

Paula Frye loaned $10,000 to her son's new business at 5% ordinary simple interest (360-day year). At the end of the loan period, Paula received the $10,000 plus $125 interest. Compute the length of the loan period. (To the nearest day.)

Question 43

Rick Morrow is willing to lend modest amounts of money to his employees for short terms at 9% ordinary simple interest (360-day year). In May, one employee borrowed some money for 30 days. In June, she repaid the loan plus $6.30 interest. Compute the amount that the employee had borrowed.

Question 44

Daniel White borrowed $5,000 for 80 days. At the due date, he paid $70 interest and repaid all of the principal. What was the ordinary simple interest rate (360-day year) that was charged on the loan? (To nearest 1/10 of a percent.)

Question 45

Nina Lopez calls a finance company to investigate borrowing $2,700 for 60 days. Nina qualifies for a loan at 9.75% exact simple interest (365-day year). If she accepts the loan, compute the total amount that Nina will have to repay.

Question 46

A florist borrowed money to buy a large quantity of new imported floral art products to sell in her shop. If it cost her $393.60 to borrow the money for 146 days at 12% exact simple interest (365-day year), what was the amount borrowed?

Question 47

A bank made a $12,000 short-term loan to a new book store and earned $187.40 interest in only 60 days. Compute the exact simple interest rate (365-day year) that the bank charged. (To nearest 1/10 of a percent.)

Question 48

Barbara Evanston, a novelty shop owner, can save $500 by purchasing merchandise now instead of waiting for two months. However, she will have to borrow $3,200 for 60 days and will have to pay 8.5% exact simple interest. How much will Barbara have to pay in interest to borrow the money? (Use a 365-day year.)

Question 49

Red Winowski invested money for five years because he was guaranteed that he would earn 12% ordinary simple interest (360-day year) per year. At the end of five years, he received all of his original investment plus an additional $1,500 as the interest that he had earned. How much money had Red invested five years earlier?

Question 50

Nathan Edwards borrowed $2,500 for 60 days to buy new clothes after an apartment fire. From his insurance proceeds, Nathan repaid a total of $2,531.25, principal and interest. Compute the ordinary simple interest rate (360-day year) that was charged. (To nearest 1/10 of a percent.)

Question 51

Melody Diaper Service is a local company that launders and delivers baby diapers. They need to borrow $6,200 to buy some new washing and drying equipment. Their loan is for 180 days at 8% exact simple interest. Compute the interest that Melody will need to pay for this loan. (Use a 365-day year.)

Question 52

The main refrigerator at Parkside Grille Restaurant had a serious malfunction. Laura Casper, the owner/chef, found a very nice used replacement refrigerator, but she needed $4,500 additional cash immediately. She took out a 75-day loan at 7.5% exact simple interest. Compute the total, interest, and principal that Laura must pay for this loan. (Use a 365-day year.)

Question 53

Dennis Rogers and Betty Chin opened a new art gallery. To help them get started, they borrowed $18,500 for one and one-half years at 8% ordinary simple interest (360-day year). Compute the total amount that they will repay.

Question 54

Janice Costa bought some power equipment priced at $1,350. The dealer permitted Janice to pay in 60 days but at a price of $1,389.60. Compute the ordinary simple interest (360-day year) rate that the dealer charged. (To nearest 1/10 of a percent.)

Question 55

Franklin Woo loaned money to his daughter, LeAnn, to help her purchase a car. The loan was for two years at 3.5% exact simple interest (365-day year). When LeAnn repaid the loan after two years, the interest amounted to $385. Compute the amount that Franklin had originally loaned to her.

Question 56

Kyle Winston borrowed $4,000 for 90 days. At the due date, he paid $75 interest and repaid all of the principal. What was the ordinary simple interest rate (360-day year) that was charged on the loan? (To nearest 1/10 of a percent.)

Question 57

Oliver Douglas opened a repair shop for computer printers. Most of his loans were long term, but he got a short term loan of $2,645 for office supplies at a rate of 8.25% exact simple interest (365-day year). On the due date, Oliver repaid a total of $2,680.87. What was the length of the loan period? (To the nearest day.)

Question 58

Willie White borrowed $2,485 for 105 days at 8% exact simple interest (365-day year). Compute the total amount that Willie must repay at the end of the loan period.

Question 59

Shane Morita opened a pet store near a school, hoping that children would see the pets in the window as they walked home. Almost immediately he needed to borrow money to maintain the pets. He got a 90-day loan for $5,600 at 9.3% exact simple interest. Compute the amount of Shane's total obligation in 90 days. (Use a 365-day year.)

Question 60

Paul Harris borrowed $3,825 for 95 days at 8.5% exact simple interest (365-day year). Compute the total amount that Paul must repay at the end of the loan period.

Question 61

Alexander Carver loaned $3,000 to Bonnie Humphrey for a vacation trip. Compute the loan period if Alexander charged 10% exact simple interest (365-day year) and Bonnie repaid a total of $3,082.19. (To the nearest day.)

Question 62

Nelda Brown borrowed $1,420 for 120 days to buy some new furniture for her office. At the due date, Nelda repaid a total of $1,448. What was the exact simple interest rate (365-day year) that she paid on the loan? (To nearest 1/10 of a percent.)