Question 1

On June 26 Laura put $2750 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 4¼ %. How much interest will she earn on the term deposit?

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Question 2

Raimo borrowed $750 from Chris on October 30 and agreed to repay the debt with simple interest at the rate of 12.3% on May 10. How much interest was owed on May 10? Assume that February has 28 days.

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Question 3

On June 26, 2011, $1000 was borrowed at an interest rate of 10¾ %. On what date was the loan repaid if the amount of accrued interest was $63.91?

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Question 4

$1000 was invested on April 18, 2011 in a certificate of deposit earning 7.7% per annum. On its maturity date, the certificate paid $32.28 interest. On what date did it mature?

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Question 5

On what date was a $1000 loan granted if the interest accrued as at November 16, 2011 was $50.05? The interest rate on the loan was 7¼ %.

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Question 6

The $1000 principal amount of a loan was repaid on March 13, 2011 along with accrued interest in the amount of $49.42. If the interest rate on the loan was 11%, what was the repayment date?

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Question 7

Bruce borrowed $6000 from Darryl on November 23. When Bruce repaid the loan, Darryl charged $203.22 interest. If the rate of simple interest on the loan was 10¾ %, on what date did Bruce repay the loan? Assume that February has 28 days.

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Question 8

Sharon's $9000 term deposit matured on March 16, 2008. Based on a simple interest rate of 3.75%, she received $110.96 in interest. On what date did she originally make the term deposit?

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Question 9

The total accrued interest owed as of August 31 on a loan advanced the preceding June 3 was $169.66. If the variable interest rate started at 8¾ %, rose to 9% effective July 1, and increased another ½ % effective July 31, what was the principal amount of the loan?

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Question 10

What will be the maturity value after seven months of $2950 earning interest at the rate of 4½ %?

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Question 11

$12,800 was invested in a 237-days term deposit earning 3¾ %. What was its maturity value?

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Question 12

What was the principal amount of a loan at 10½ % if total amount owed after 23 days was $785.16?

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Question 13

$7348.25 was the amount required to pay off a loan after 14 months. If the loan was at 8¼ % per annum simple interest, how much of the total was interest?

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Question 14

The amount required to settle a $680 debt after 300 days was $730.30. What rate of interest was charged on the debt?

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Question 15

Janesh has savings of $9625.63. If he can invest this amount to earn 7.8%, how many days will it take for the investment to grow to $10,000?

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Question 16

The amount required to pay off a $3500 loan at 8.4% was $3646.60. What was the term (in days) of the loan?

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Question 17

A $7760 investment earning 6¼ % matured at $8083.33. What was the term (in months) of the investment?

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Question 18

The interest rate on an $859.50 debt was 10¼ %. For how many months was the loan outstanding if it was settled with a payment of $907.22?

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Question 19

The snow tires that you are planning to buy next October 1 at the regular price of $107.50 each are advertised at $89.95 in a spring clearance special that will end on the preceding March 25. What annual rate of simple interest will you earn if you "invest"
in the new snow tires at the sale price on March 25 instead of waiting until October 1 to buy them at the regular price?

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Question 20

The cash balance in Amalia's account with her stockbroker earns interest on the daily balance at an annual rate of 4%. Accrued interest is credited to her account every six months-on June 30 and December 31. As a result of the purchase and sale of securities from time to time, the account's balance changed as follows:  
What interest was credited to Amalia's account on June 30? The brokerage firm includes interest for both January 1 and June 30 in the June 30 payment. Assume that February had 28 days.

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Quiz 6: Simple Interest