Question 1

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

Accepted Answer

S = 3700; r = 0.1475; t =  P =  =  = $3129.62

Question 2

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

Accepted Answer

Interest: I = 4845.94 - 3500 = 1345.94; P = 3500; r = 0.0725 t_months = ∗ 12

Question 3

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?

Accepted Answer

Number of days = 16 + 31 + 31 + 28 + 31 + 30 + 20 = 187
r =  =  = 5.5244%

Question 4

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?

Accepted Answer

The answer of On June 12, 2013, Frank James opened...

Question 5

At what rate of interest will $16 590 earn $147.93 in a year?

Accepted Answer

The answer of At what rate of interest will $16...

Question 6

If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18 000?

Accepted Answer

A)   $600 000
B)   $120 000
C)   $1 200 000
D)   $270
E)   $540

Question 7

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

Accepted Answer

The answer of What principal will have a maturity value...

Question 8

What amount of interest will be charged on $20 000 in 1 month for a simple interest of 5.99%?

Accepted Answer

A)   $1198
B)   $119.80
C)   $99.83
D)   $9.98
E)   $0

Question 9

Bart deposited $4300 into a savings account with a rate of 1.4% p.a. After 200 days, what is the maturity value of the deposit?

Accepted Answer

The answer of Bart deposited $4300 into a savings account...

Question 10

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

Accepted Answer

The answer of What principal will earn $219.89 interest at...

Question 11

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?

Accepted Answer

The answer of Debt payments of $1170.00 due two months...

Question 12

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

Accepted Answer

The answer of Compute the amount of interest for $500.00...

Question 13

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

Accepted Answer

The answer of Find the maturity value of $832.00 invested...

Question 14

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%?

Accepted Answer

The answer of On April 24, 2012, Rebecca purchased a...

Question 15

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

Accepted Answer

The answer of Determine the number of days it will...

Question 16

CentSmart Inc. deposited $83 215 into an account that had a simple interest rate of 2.3% on February 27th, 2015. On New Year's Eve, how much interest had been earned on that deposit?

Accepted Answer

The answer of CentSmart Inc. deposited $83 215 into an...

Question 17

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

Accepted Answer

The answer of What sum of money will accumulate to...

Question 18

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.

Accepted Answer

The answer of A debt of $7120 is to be...

Question 19

How much money do you have to invest in order to accumulate a total of $4761 in 327 days if you are able to earn 9.52% on your money?

Accepted Answer

A)   $3485.86
B)   $4358.86
C)   $4386.85
D)   $3458.86
E)   $3845.86

Question 20

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

Accepted Answer

The answer of What principal will earn $59.99 interest at...

Exam 7: Simple Interest