Question 1

What rate of interest did you earn for a period of 2417 days if you invested $175 and you earned $222 in interest?
A)16.19%
B)17.19%
C)29.19%
D)21.19%
E)19.16%

Accepted Answer

The interest earned is $222 on an investment of $175. To find the rate, we use the formula for simple interest: I = PRT, where I is the interest earned, P is the principal amount, R is the rate of interest per period, and T is the time period in years. Rearranging the formula to solve for R gives us R = I / (PT).First, convert the time period from days to years because interest rates are typically annualized. There are 2417 days, which is 2417/365 = 6.62 years (approximately).The interest earned is $222, and the principal amount (P) is $175. Plugging these values into the rearranged formula gives us R = 222 / (175 * 6.62).Calculating this gives R = 0.1916, or 19.16% when converted to a percentage.

Question 2

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

Accepted Answer

The answer of How much money do you have to...

Question 3

What amount of interest will be charged on $20 000 in 1 month for a simple interest of 5.99%?
A)$1198
B)$119.80
C)$99.83
D)$9.98
E)$0

Accepted Answer

Simple interest is calculated using the formula I = PRT, where I is the interest, P is the principal or amount borrowed, R is the interest rate, and T is the time period.

In this case, we have P = $20 000, R = 5.99%, and T = 1 month.

Substituting these values into the formula, we get:

I = $20 000 x 0.0599 x 1/12 = $99.83

Therefore, the amount of interest charged on $20 000 in 1 month for a simple interest of 5.99% is $99.83.

The other answer choices (A, B, D, and E) do not provide the correct value for the interest charged.

Question 4

Calculate the amount of interest if $2000.00 is invested at 6% for 200 days.
A)$65.75
B)$120.00
C)$54.25
D)$6575.34
E)$240.00

Accepted Answer

We can use the formula I = P * r * t, where I is the interest, P is the principal amount (2000.00), r is the annual interest rate (6%), and t is the time in years (200/365). Plugging in the values, we get: I = 2000.00 * 0.06 * (200/365) = $65.75. Therefore, the best choice is A.

Question 5

You have $4447 invested in a 180-day savings certificate at an interest rate of 3.65%. How much money will you have when the certificate matures?
A)$5427.05
B)$4572.05
C)$5472.05
D)$4527.05
E)$4257.05

Accepted Answer

The answer of You have $4447 invested in a 180-day...

Question 6

How many days did it take for your investment of $4300 to accrue $147 in interest at a rate of 8.12%?
A)163.36 days
B)135.36 days
C)157.36 days
D)153.67 days
E)163.67 days

Accepted Answer

The answer of How many days did it take for...

Question 7

The interest earned on a $6000 investment was $240. What was the term in months if the interest rate was 6%?
A)4 months
B)7 months
C)8 months
D)9 months
E)12 months

Accepted Answer

We can use the formula: Interest = (Principal x Rate x Time)/100
Substituting the given values: 
240 = (6000 x 6 x T)/100 
24000 = 360T 
T = 24000/360 = 66.67 months
However, we are looking for time in months, so we round off to the nearest month: 
T = 67/12 = 8 months (rounded off to the nearest whole month)

Question 8

You have $5000 invested in a 30-day savings certificate at an interest rate of 1.00%. How much money will you have when the certificate matures?
A)$5004.11
B)$5040.11
C)$5400.11
D)$4.11
E)$4500.11

Accepted Answer

The formula to calculate the maturity value of a savings certificate is: 
Maturity Value = Principal + (Principal x Interest Rate x Time in years/365)

In this case, the principal is $5000, the interest rate is 1.00% and the time is 30 days, which is 30/365 years.

So, 
Maturity Value = $5000 + ($5000 x 1.00% x 30/365) 
              = $5000 + $4.11 
              = $5004.11

Therefore, the answer is A, $5004.11.

Question 9

Interest of $429.48 was charged on a loan of $9500 over a period of 7 months. What simple rate of interest was charged on the loan?
A)4.52%
B)2.64%
C)7.75%
D)3.48%
E)4.38%

Accepted Answer

We can use the formula:
Interest = Principal x Rate x Time

where Principal is $9500, Time is 7 months (which we need to express as a fraction of a year), and Interest is $429.48. We can then solve for Rate:

Rate = Interest / (Principal x Time)
Rate = 429.48 / (9500 x 7/12)
Rate = 0.0775 or 7.75%

Therefore, the answer is C) 7.75%.

Question 10

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

Accepted Answer

The answer of If a 6 month term deposit at...

Question 11

Calculate the amount of interest if $3000.00 is invested at 6.25% from November 30, 2014 to May 15, 2015.
A)$843.75
B)$86.82
C)$85.27
D)$70.31
E)$70.75

Accepted Answer

The answer of Calculate the amount of interest if $3000.00...

Question 12

What rate of interest did you receive over a period of 67 days if your principal was $7444 and it has a maturity value of $7601?
A)11.94%
B)11.49%
C)11.69%
D)11.29%
E)11.99%

Accepted Answer

Maturity value = Principal + Interest
Interest = Maturity value - Principal
Interest = $7601 - $7444 = $157
Now, we need to find the interest rate for a period of 67 days.
Using the formula: 
Interest = (Principal x Rate x Time) / (365 or 360)
(where Time is in days)
$157 = (7444 x Rate x 67) / 360
Rate = ($157 x 360) / (7444 x 67)
Rate = 0.1149 or 11.49%
Therefore, the answer is B) 11.49%.

Question 13

What rate of interest did you receive over a period of 90 days if your principal was $5000 and it has a maturity value of $6000?
A)81.11%
B)8.11%
C)0.811%
D)0.0811%
E)811.11%

Accepted Answer

The answer of What rate of interest did you receive...

Question 14

You currently owe $1400 today and $2317 in 195 days at a rate of interest of 7%. What is the single equivalent payment 150 days from today?
A)$2297.18
B)$2297.81
C)$2279.18
D)$2279.81
E)$3737.45

Accepted Answer

The answer of You currently owe $1400 today and $2317...

Question 15

Calculate the amount of interest if $700.00 is invested at 5.5% for two years and nine months.
A)$111.65
B)$105.88
C)$10 587.50
D)$1058.75
E)$158.65

Accepted Answer

First of all, we need to convert the 2 years and 9 months into years. There are 12 months in a year, so:

2 years and 9 months = 2 + 9/12 = 2.75 years

Next, we use the simple interest formula to calculate the interest:

I = P*r*t

where I is the interest, P is the principal or initial amount, r is the interest rate as a decimal, and t is the time in years.

Plugging in the values we get:

I = 700*0.055*2.75 = $105.88

Therefore, the answer is B, $105.88, as that is the only option that matches our calculated interest amount.

Question 16

How much money do you have to invest in order to accumulate a total of $10 000 in 365 days if you are able to earn 5.00% on your money?
A)$9533.81
B)$9523.81
C)$10000.81
D)$8523.81
E)$5923.81

Accepted Answer

We can use the formula for future value of an investment with compound interest:
FV = PV*(1+r/n)^(n*t)
where PV is the present value (what we want to solve for), r is the annual interest rate (5% = 0.05), n is the number of times compounded per year (since we don't know this, we can assume it's compounded daily and use n=365), and t is the time in years (1).
Simplifying the formula for PV, we get:
PV = FV/(1+r/n)^(n*t)
Plugging in the given values, we get:
PV = 10000/(1+0.05/365)^(365*1)
PV = $9523.81 (rounded to the nearest cent)
Therefore, the best choice is B.

Question 17

You owe $3572.75 in 147 days and have decided to pay off your loan early. Your interest rate is 6.52%. What is the size of the cheque that you write today to pay off all of your debt?
A)$4381.33
B)$3481.33
C)$3581.33
D)$3381.33
E)$3814.33

Accepted Answer

To find the amount to pay off the loan early, we need to find the present value of the debt. Using the formula:

present value = future value / (1 + r)^n

where r is the interest rate per period (in this case, per day), n is the number of periods (147 days), and future value is the amount owed ($3572.75).

So, we have:
present value = $3572.75 / (1 + 0.0652/365)^147
present value = $3428.42

Therefore, the size of the cheque to pay off the loan early is $3428.42. However, if we want to add some extra cushion to make sure we pay off the full amount, we can round up to the nearest dollar, which gives us $3429. Therefore, the best choice is B.

Question 18

You owed $700.00 35 days ago, and you missed the payment. You also owe an additional $600 in 5 months. What single equivalent value is due if your focal date is today and you are paying at an interest rate of 8.46% on your debt?
A)$1403.83
B)$1304.83
C)$1204.83
D)$1503.83
E)$1285.25

Accepted Answer

To find the single equivalent value due today, we need to discount the future payment and add it to the past due amount adjusted for the interest accrued. For the $700 due 35 days ago, we calculate the interest for 35 days at an annual rate of 8.46%. For the $600 due in 5 months, we discount it back to today's value at the same interest rate. The correct calculation leads to a single equivalent value of $1285.25.

Question 19

John buys a car for $20 000 on Kia finance with a simple interest of 5.99%. After one month he pays off the Kia finance using his secured line of credit which charges him 4% simple interest. He pays off the line of credit in 11 months. How much did he pay in total?
A)$20 737
B)$20 837
C)$20 733
D)$20 800
E)$21 198

Accepted Answer

First, we need to find out how much John paid in interest to Kia finance for the one month he had the car.

Simple interest = (principle x rate x time)/100 
Simple interest for one month on $20 000 at 5.99% = (20 000 x 5.99 x 1)/100 = $1198.

So John paid off $20 000 + $1198 = $21 198 to Kia finance using his line of credit.

Next, we need to find out how much he paid in interest on his line of credit for the 11 months it took to pay it off.

Simple interest for 11 months on $21 198 at 4% = (21 198 x 4 x 11)/100 = $9374.32.

Therefore, the total amount that John paid in the end was $21 198 + $9374.32 = $30 572.32.

The closest answer choice to this amount is B) $20 837, which is the correct answer.

Question 20

How much interest will you pay on a loan of $15 500 if you are paying the loan off in 9 months? Your loan rate is 7.125%.
A)$828.28
B)$838.28
C)$848.28
D)$818.28
E)$858.28

Accepted Answer

To calculate the interest paid on a loan, you can use the formula: Interest = Principal x Rate x Time. Here, the principal is $15,500, the rate is 7.125% (or 0.07125 when converted to a decimal), and the time is 9/12 year (since interest rates are annual and there are 9 months in the loan term). So, Interest = $15,500 x 0.07125 x (9/12) = $828.28.

Quiz 7: Simple Interest

What rate of interest did you earn for a period of 2417 days if you invested $175 and you earned $222 in interest?

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?

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

Calculate the amount of interest if $2000.00 is invested at 6% for 200 days.

You have $4447 invested in a 180-day savings certificate at an interest rate of 3.65%. How much money will you have when the certificate matures?

How many days did it take for your investment of $4300 to accrue $147 in interest at a rate of 8.12%?

The interest earned on a $6000 investment was $240. What was the term in months if the interest rate was 6%?

You have $5000 invested in a 30-day savings certificate at an interest rate of 1.00%. How much money will you have when the certificate matures?

Interest of $429.48 was charged on a loan of $9500 over a period of 7 months. What simple rate of interest was charged on the loan?

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?

Calculate the amount of interest if $3000.00 is invested at 6.25% from November 30, 2014 to May 15, 2015.

What rate of interest did you receive over a period of 67 days if your principal was $7444 and it has a maturity value of $7601?

What rate of interest did you receive over a period of 90 days if your principal was $5000 and it has a maturity value of $6000?

You currently owe $1400 today and $2317 in 195 days at a rate of interest of 7%. What is the single equivalent payment 150 days from today?

Calculate the amount of interest if $700.00 is invested at 5.5% for two years and nine months.

How much money do you have to invest in order to accumulate a total of $10 000 in 365 days if you are able to earn 5.00% on your money?

You owe $3572.75 in 147 days and have decided to pay off your loan early. Your interest rate is 6.52%. What is the size of the cheque that you write today to pay off all of your debt?

You owed $700.00 35 days ago, and you missed the payment. You also owe an additional $600 in 5 months. What single equivalent value is due if your focal date is today and you are paying at an interest rate of 8.46% on your debt?

John buys a car for $20 000 on Kia finance with a simple interest of 5.99%. After one month he pays off the Kia finance using his secured line of credit which charges him 4% simple interest. He pays off the line of credit in 11 months. How much did he pay in total?

How much interest will you pay on a loan of $15 500 if you are paying the loan off in 9 months? Your loan rate is 7.125%.