Question 1

The bookkeeper for Durham's Garage is trying to allocate to principal and interest a payment that was made to settle a loan. The cheque stub has the note "$3,701.56 for principal and 7 months' interest at 12.5%." What are the principal and interest components of the payment?

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Question 2

The maturity value of an investment earning 7.7% per annum for a 360-day term was $2291.01. What amount was originally invested?

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Question 3

Asher cashed in a one-year term deposit after only five months had elapsed. In order to do so, he accepted an interest rate penalty-a reduction from the scheduled 5.5% rate of simple interest. If he was paid $145.83 interest on the $10,000 term deposit, what reduction was made in the per-annum rate of simple interest?

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Question 4

Megan was charged $124.83 interest on her bank loan for the period September 18 to October 18. If the rate of interest on her loan was 8.25%, what was the outstanding principal balance on the loan during the period?

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Question 5

On what date was a $1000 loan granted if the interest accrued as of November 16, 2013 was $50.05? The interest rate on the loan was 7.25%.

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Question 6

Petra has forgotten the rate of simple interest she earned on a 120-day term deposit at Scotiabank. At the end of the 120 days, she received interest of $327.95 on her $21,000 deposit. What rate of simple interest was her deposit earning?

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Question 7

Marta borrowed $1,750 from Jasper on November 15, 2014, and agreed to repay the debt with simple interest at the rate of 7.4% on June 3, 2015. How much interest was owed on June 3?

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Question 8

What will be the maturity value after seven months of $2950 earning interest at the rate of 4.5%?

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Question 9

A $7760 investment earning 6.25% matured at $8083.33. What was the term (in months) of the investment?

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Question 10

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?

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Question 11

What was the principal amount of a loan at 9.5% if $67.78 of interest accrued from October 28, 2013 to April 14, 2014?

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Question 12

After a term of 23 days, a loan at 10.5% has a maturity value of $785.16. What was the principal value of the loan?

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Question 13

$12,800 was invested in a 237-day term deposit earning 3.75%. What was its maturity value?

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Question 14

The balance after 11 months, including, on a loan at 9.9% is $15,379.58. What are the principal and interest components of the balance?

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Question 15

Indira paid interest charges of $169.05 on a $4830 invoice that was two months overdue. What monthly rate of simple interest was she charged?

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Question 16

Marliss made a $780.82 purchase on her Visa card. Including 45 days' interest, the amount billed on her credit card was $798.63. What annual interest rate does her card charge?

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Question 17

A $2875.40 investment grew to $3000 after eight months. What annual rate of simple interest did it earn?

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Question 18

What was the interest rate on a $1750 loan if the amount required to pay off the loan after five months was $1,828.02?

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Question 19

Morgan loaned $3,100 to Rolf at a simple interest rate of 0.65% per month. What was the term of loan if the total interest came to $221.65?

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Question 20

$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?

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Quiz 6: Simple Interest