Question 1

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.)

Accepted Answer

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Question 2

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.)

Accepted Answer

The answer of Paula Frye loaned $10,000 to her son's...

Question 3

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.

Accepted Answer

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Question 4

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.)

Accepted Answer

The answer of Daniel White borrowed $5,000 for 80 days....

Question 5

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.

Accepted Answer

The answer of Nina Lopez calls a finance company to...

Question 6

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?

Accepted Answer

The answer of A florist borrowed money to buy a...

Question 7

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.)

Accepted Answer

The answer of A bank made a $12,000 short-term loan...

Question 8

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.)

Accepted Answer

The answer of Barbara Evanston, a novelty shop owner, can...

Question 9

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?

Accepted Answer

The answer of Red Winowski invested money for five years...

Question 10

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.)

Accepted Answer

The answer of Nathan Edwards borrowed $2,500 for 60 days...

Question 11

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.)

Accepted Answer

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Question 12

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.)

Accepted Answer

The answer of The main refrigerator at Parkside Grille Restaurant...

Question 13

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.

Accepted Answer

The answer of Dennis Rogers and Betty Chin opened a...

Question 14

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.)

Accepted Answer

The answer of Janice Costa bought some power equipment priced...

Question 15

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.

Accepted Answer

The answer of Franklin Woo loaned money to his daughter,...

Question 16

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.)

Accepted Answer

The answer of Kyle Winston borrowed $4,000 for 90 days....

Question 17

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.)

Accepted Answer

The answer of Oliver Douglas opened a repair shop for...

Question 18

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.

Accepted Answer

The answer of Willie White borrowed $2,485 for 105 days...

Question 19

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.)

Accepted Answer

The answer of Shane Morita opened a pet store near...

Question 20

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.

Accepted Answer

The answer of Paul Harris borrowed $3,825 for 95 days...

Quiz 13: Simple Interest