Question 1

Mario borrowed $6,000 on March 1 at a variable rate of interest. The interest rate began at 7.5%, increased to 8% effective April 17, and then fell by 0.25% effective June 30. How much interest will be owed on the August 1 repayment date?

Accepted Answer

The answer of Mario borrowed $6,000 on March 1 at...

Question 2

How much money would one have to invest today at 18.75% in order to have a total of $20,000 in 9 months?

Accepted Answer

A)  $16,250 
B)  $23,750 
C)  $22,813 
D)  $17,534 
E)  $19,122

Question 3

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

Accepted Answer

The answer of What payment, 174 days from now, is...

Question 4

What amount on January 23 is equivalent to $1,000 on the preceding August 18 if money can earn 6.5%?

Accepted Answer

The answer of What amount on January 23 is equivalent...

Question 5

Fred puts $5,475 into a term deposit on May 15th. The deposit earns a simple interest rate of 4%. If the term deposit will mature on August 14th, how much interest will Fred earn?

Accepted Answer

A)  $35.40 
B)  $24.80 
C)  $36.00 
D)  $36.60 
E)  $54.60

Exam 6: Simple Interest

Mario borrowed $6,000 on March 1 at a variable rate of interest. The interest rate began at 7.5%, increased to 8% effective April 17, and then fell by 0.25% effective June 30. How much interest will be owed on the August 1 repayment date?

How much money would one have to invest today at 18.75% in order to have a total of $20,000 in 9 months?

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

What amount on January 23 is equivalent to $1,000 on the preceding August 18 if money can earn 6.5%?

Fred puts $5,475 into a term deposit on May 15^th. The deposit earns a simple interest rate of 4%. If the term deposit will mature on August 14^th, how much interest will Fred earn?