Question 1

Use ordinary interest:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline & & \text { Date } & \text { Date } & & \text { Simple } & \text { Amount } \
\text { Principal } & \text { Interest Rate } & \text { Borrowed } & \text { Repaid } & \text { Time } & \text { Interest } & \text { Paid Back } \
\hline \$ 9,000 & 11 \% & \text { Apr } 20 & \text { Aug } 8 & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Use ordinary interest:
 \[\begin{array} { | l...

Question 2

Find A and B in the table below.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest Rate } & \text { Time } & \begin{array} { l } 
\text { Simple } \
\text { Interest }
\end{array} & \begin{array} { l } 
\text { Total Amount } \
\text { Owed }
\end{array} \
\hline \$ 16,000 & 8 \% & 3 \mathrm { mos } & \mathrm { A } & \mathrm { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Find A and B in the table...

Question 3

Find A and B in the table below.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest Rate } & \text { Time } & \begin{array} { l } 
\text { Simple } \
\text { Interest }
\end{array} & \begin{array} { l } 
\text { Total Amount } \
\text { Owed }
\end{array} \
\hline \$ 25,000 & 10 \% & 2 \text { yrs } & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Find A and B in the table...

Question 4

Jones of Boston borrowed $40,000, on a 90-day 10% note. After 60 days, Jones made an initial payment of $6,000. On day 80, Jones made an additional payment of $7,000. Assuming the U.S. Rule, what is the adjusted balance after the second payment? Use 360 days.

Accepted Answer

$40,000 × .10 × 60/360 = $666.67; $6,000 - $666.67 = $5,333.33; $40,000 - $5,333.33 = $34,666.67; 34,666.67 × .10 × (80 - 60)/ 360 = $192.59; 7000 - 192.59 = $6,807.41; 34,666.67 - 6,807.41 = $27,859.26.

Question 5

Round to nearest cent or hundredth percent as needed:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Principal } & \text { Rate } & \text { Time } & \text { Simple Interest } \
\hline ? & 11 \% & 2 \mathrm { mos } & \$ 1,250 \
\hline
\end{array}$$

Accepted Answer

The answer of Round to nearest cent or hundredth percent...

Question 6

Find A and B in the table below.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest Rate } & \text { Time } & \begin{array} { l } 
\text { Simple } \
\text { Interest }
\end{array} & \begin{array} { l } 
\text { Total Amount } \
\text { Owed }
\end{array} \
\hline \$ 22,000 & 12 \% & 8 \mathrm { mos } & \mathrm { A } & \mathrm { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Find A and B in the table...

Question 7

Round to nearest cent:
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest Rate } & \text { Time } & \begin{array} { l } 
\text { Simple } \
\text { Interest }
\end{array} & \begin{array} { l } 
\text { Total Amount } \
\text { Owed }
\end{array} \
\hline \$ 32,000 & 7 \% & 3 \text { yrs } & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Round to nearest cent:
 \[\begin{array} { |...

Question 8

On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what is the total interest cost to Bette?

Accepted Answer

Days = 12 + 30 + 31 + 31 + 30 + 8 = 142 days; $145.89 = $3,000 × .125 × 142/365.

Question 9

Amy Koy met Pat Quinn on Sept. 8 at Queen Bank. After talking with Pat, Amy decided she would like to consider a $9,000 loan at 10 1/2% to be repaid on Feb. 17 of the next year on exact interest. Calculate the amount that Amy would pay at maturity under this assumption. Round all answers to the nearest cent.

Accepted Answer

Days = 22 (Sept)+ 31 (Oct)+ 30 (Nov)+ 31 (Dec)+ 31 (Jan)+ 17 (Feb)= 162 days; I = 9,000 × .105 × 162/365 = $419.42; MV = $419.42 + $9,000 = $9,419.42

Question 10

Use ordinary interest:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline & \text { Interest } & \text { Date } & \text { Date } & & \text { Simple } & \text { Amount Paid } \
\text { Principal } & \text { Rate } & \text { Borrowed } & \text { Repaid } & \text { Time } & \text { Interest } & \text { Back } \
\hline \$ 8,000 & 12 \% & \text { May 5 } & \text { Aug 10 } & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Use ordinary interest:
 \[\begin{array} { | l...

Question 11

Find the adjusted balance (principal)using the U.S. Rule (360 day)after the first payment.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Rate } & \text { Total Time for Note } & \text { Note Amount } & \begin{array} { l } 
\text { Partial Payment } \
\text { on Day 30 }
\end{array} & \begin{array} { l } 
\text { Partial Payment } \
\text { on Day 90 }
\end{array} \
\hline 11 \% & 120 \text { days } & \$ 7,000 & \$ 900 & \$ 1,200 \
\hline
\end{array}$$

Accepted Answer

The answer of Find the adjusted balance (principal)using the U.S....

Question 12

Use exact interest. Round to nearest cent:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline & & \text { Date } & \text { Date } & & \text { Simple } & \text { Amount } \
\text { Principal } & \text { Interest Rate } & \text { Borrowed } & \text { Repaid } & \text { Time } & \text { Interest } & \text { Paid Back } \
\hline \$ 15,000 & 12 \% & \text { May 12 } & \text { Sept 16 } & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Use exact interest. Round to nearest cent:
...

Question 13

Use ordinary interest:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest } & \text { Date } & \text { Date } & & \text { Simple } & \text { Amount } \
& \text { Rate } & \text { Borrowed } & \text { Repaid } & \text { Time } & \text { Interest } & \text { Paid Back } \
\hline \$ 12,000 & 9 \% & \text { Apr 5 } & \text { Aug } 9 & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Use ordinary interest:
 \[\begin{array} { | l...

Question 14

Round to nearest cent:
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Interest Rate } & \text { Time } & \begin{array} { l } 
\text { Simple } \
\text { Interest }
\end{array} & \begin{array} { l } 
\text { Total Amount } \
\text { Owed }
\end{array} \
\hline \$ 18,000 & 9 \% & 4 \mathrm { mos } & \mathrm { A } & \mathrm { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Round to nearest cent:
 \[\begin{array} { |...

Question 15

Round all answers to the nearest cent. Woody's Café's real estate tax of $1,110.85 was due on November 1, 2017. Due to financial problems, Woody was unable to pay his café's real estate tax bill until January 15, 2018. The penalty for late payment is 8 1/4% ordinary interest. (A)What is the penalty Woody will have to pay and (B)what will Woody pay on January 15?

Accepted Answer

Days between Jan 15 and Nov 1 = 29 + 31 + 15 = 75; A. I = $1,110.85 × .0825 × 75/360 = $19.09; B. MV $1,110.85 + $19.09 = $1,129.94.

Question 16

Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. Round all answers to the nearest cent. DO NOT round the denominator in your calculation.

Accepted Answer

$155/(.1025 × (30/360))= $18,146.34.

Question 17

Interest is $405 on a principal balance of $5,000; assuming a 7 month loan, what is the rate? Round to the nearest cent or hundredth percent as needed.

Accepted Answer

$405/(5,000 × (7/12))= 13.89%.

Question 18

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Accepted Answer

I = 82,000 × .0925 × 9 = $68,265; MV = 68,265 + 82,000 = $150,265

Question 19

Find A and B in the table below.
 $$\begin{array} { | l | l | l | l | l | } 
\hline & & & \text { Simple } & \text { Total Amount } \
\text { Principal } & \text { Interest Rate } & \text { Time } & \text { Interest } & \text { Owed } \
\hline \$ 18,000 & 9 \% & 3 \text { yrs } & \text { A } & \text { B } \
\hline
\end{array}$$

Accepted Answer

The answer of Find A and B in the table...

Question 20

Ron Tagney owns his own truck. His June interest is $210. The current rate of interest is 11%. Assuming a 360-day year, what was Ron's principal balance at the beginning of June? (Round to nearest cent.)

Accepted Answer

$210/(.11 × (30/360))= $22,909.26. Note in calculation denominator is not rounded.

Quiz 10: Simple Interest

Jones of Boston borrowed $40,000, on a 90-day 10% note. After 60 days, Jones made an initial payment of $6,000. On day 80, Jones made an additional payment of $7,000. Assuming the U.S. Rule, what is the adjusted balance after the second payment? Use 360 days.

Round to nearest cent or hundredth percent as needed: $\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \text { Time } & \text { Simple Interest } \\\hline ? & 11 \% & 2 \mathrm { mos } & \$ 1,250 \\\hline\end{array}$

On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what is the total interest cost to Bette?

Lou Valdez is buying a truck. His monthly interest is $155 at 10 1/4 %. What is Lou's principal balance after the beginning of November? Use 360 days. Round all answers to the nearest cent. DO NOT round the denominator in your calculation.

Interest is $405 on a principal balance of $5,000; assuming a 7 month loan, what is the rate? Round to the nearest cent or hundredth percent as needed.

Round all answers to the nearest cent. Angel Hall borrowed $82,000 for her granddaughter's college education. She must repay the loan at the end of nine years with 9¼% interest. What is the maturity value Angel must repay?

Ron Tagney owns his own truck. His June interest is $210. The current rate of interest is 11%. Assuming a 360-day year, what was Ron's principal balance at the beginning of June? (Round to nearest cent.)