Question 1

$7348.25 was the amount required to pay off a loan after 14 months. If the loan was at 8.25% per annum simple interest, how much of the total was interest?

Accepted Answer

The answer of $7348.25 was the amount required to pay...

Question 2

Calculate the missing value:

Accepted Answer

The answer of Calculate the missing value:
 ...

Question 3

On June 26 Laura put $2,750 into a term deposit until September 3, when she needs the money for tuition, books, and other expenses to return to college. For term deposits in the 60-89-day range, her credit union pays an interest rate of 4.25%. How much interest will she earn on the term deposit?

Accepted Answer

The answer of On June 26 Laura put $2,750 into...

Question 4

If money is worth 14 %, what payment on August 29 would be equal in value to a payment of $86,900 due on January 31 of the following year?

Accepted Answer

A)  $74,734 
B)  $92,066 
C)  $81,734 
D)  $76,519 
E)  $82,024

Question 5

How many months would it take to earn $3,570 interest on a deposit of $84,000 earning 8 ½%?

Accepted Answer

A)  7.5 months 
B)  12 months 
C)  ¾ month 
D)  9 months 
E)  6 months

Question 6

Calculate the missing value:

Accepted Answer

The answer of Calculate the missing value:
 ...

Question 7

Calculate the missing value:

Accepted Answer

The answer of Calculate the missing value:
 ...

Question 8

In addition to a $2,163 refund of his income tax overpayment, the Canada Revenue Agency (CRA) paid Raisa $13.36 of interest on the overpayment. If the simple interest rate paid by Revenue Canada was 5.5%, how many days' interest was paid?

Accepted Answer

The answer of In addition to a $2,163 refund of...

Question 9

On what day will the amount of interest earned reach $5,000 if $250,000 was invested at an interest rate of 11% on June 23?

Accepted Answer

A)  Mar. 8 
B)  Jul. 10 
C)  Aug. 29 
D)  Nov. 1 
E)  Dec. 18

Question 10

Calculate the missing value:

Accepted Answer

The answer of Calculate the missing value:
...

Question 11

Which of the following two payment streams has the greater economic value today if money can earn 3.5%: $500 now, $600 in three months, plus $900 in six months or $700 now, $300 in three months, plus $1,000 in nine months?

Accepted Answer

The answer of Which of the following two payment streams...

Question 12

A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?

Accepted Answer

The answer of A $5,000 loan made on March 15...

Question 13

Calculate the missing values:

Accepted Answer

The answer of Calculate the missing values:
 ...

Question 14

$3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

Accepted Answer

The answer of $3,000 loan was advanced on March 1....

Question 15

Payments of $2,500 due now and $6,500 due in 90 days are to be replaced by a $4,000 payment due in 120 days and a final payment due in 180 days from now. If interest is 5.5% annually, determine the value of the final payment if the focal point is 180 days from now.

Accepted Answer

A)  $5,220.67 
B)  $5,207.38 
C)  $5,163.45 
D)  $5,119.80 
E)  $5,087.63

Question 16

The interest earned on a $7,500 investment was $1181.25. What was the term in months if the rate of interest was 3.5%?

Accepted Answer

The answer of The interest earned on a $7,500 investment...

Question 17

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?

Accepted Answer

A)  7.5 months 
B)  8.0 months 
C)  8.5 months 
D)  9.0 months 
E)  9.5 months

Question 18

A loan of $1,580 bearing interest at 15% is due nine months from now. What single payment three months before the loan is due will put the lender in the same financial position as the scheduled payment at maturity? Assume that money can earn 12%.

Accepted Answer

A)  $1,658.25 
B)  $1,533.98 
C)  $1,706.55 
D)  $1,490.57 
E)  $1,642.38

Question 19

Karen borrowed $2,000 at 10¼% on July 13. On what date would the amount owed first exceed $2,100?

Accepted Answer

The answer of Karen borrowed $2,000 at 10¼% on July...

Question 20

A $3,000 payment is scheduled for 6 months from now. If money is worth 6.75%, calculate the payment's equivalent values at two-month intervals beginning today and ending one year from now.

Accepted Answer

The answer of A $3,000 payment is scheduled for 6...

Exam 6: Simple Interest

$7348.25 was the amount required to pay off a loan after 14 months. If the loan was at 8.25% per annum simple interest, how much of the total was interest?

Calculate the missing value:

On June 26 Laura put $2,750 into a term deposit until September 3, when she needs the money for tuition, books, and other expenses to return to college. For term deposits in the 60-89-day range, her credit union pays an interest rate of 4.25%. How much interest will she earn on the term deposit?

If money is worth 14 %, what payment on August 29 would be equal in value to a payment of $86,900 due on January 31 of the following year?

How many months would it take to earn $3,570 interest on a deposit of $84,000 earning 8 ½%?

Calculate the missing value:

Calculate the missing value:

In addition to a $2,163 refund of his income tax overpayment, the Canada Revenue Agency (CRA) paid Raisa $13.36 of interest on the overpayment. If the simple interest rate paid by Revenue Canada was 5.5%, how many days' interest was paid?

On what day will the amount of interest earned reach $5,000 if $250,000 was invested at an interest rate of 11% on June 23?

Calculate the missing value:

Which of the following two payment streams has the greater economic value today if money can earn 3.5%: $500 now, $600 in three months, plus $900 in six months or $700 now, $300 in three months, plus $1,000 in nine months?

A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?

Calculate the missing values:

$3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

Payments of $2,500 due now and $6,500 due in 90 days are to be replaced by a $4,000 payment due in 120 days and a final payment due in 180 days from now. If interest is 5.5% annually, determine the value of the final payment if the focal point is 180 days from now.

The interest earned on a $7,500 investment was $1181.25. What was the term in months if the rate of interest was 3.5%?

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?

A loan of $1,580 bearing interest at 15% is due nine months from now. What single payment three months before the loan is due will put the lender in the same financial position as the scheduled payment at maturity? Assume that money can earn 12%.

Karen borrowed $2,000 at 10¼% on July 13. On what date would the amount owed first exceed $2,100?

A $3,000 payment is scheduled for 6 months from now. If money is worth 6.75%, calculate the payment's equivalent values at two-month intervals beginning today and ending one year from now.