# Quiz 6: Simple Interest

Business

Q 1Q 1

How much interest will be earned on $8,000 over a period of four months if the interest rate is 6.5%?
A) $7,830.34
B) $173.33
C) $169.66
D) $130.00
E) $26.00

Free

Multiple Choice

B

Q 2Q 2

How much must be placed in a two-month term deposit earning 4.8% in order to earn $275 interest?
A) $12,500.00
B) $5,729.17
C) $23,333.33
D) $34,375.00
E) $53,333.33

Free

Multiple Choice

D

Q 3Q 3

In how many months will $6,000 earn interest of $2,700 at 15%?
A) 3 months
B) 36 months
C) 4 months
D) 60 months
E) 1 month

Free

Multiple Choice

B

Q 4Q 4

A principal of $2,680 is invested for 2.5 years at a rate of 12%. What amount of interest will be earned?
A) $321.60
B) $3,001.60
C) $3,484.00
D) $290.33
E) $804.00

Free

Multiple Choice

Q 5Q 5

A deposit of $659 earns $15.10 interest at a rate of 4.5%. For how many days was this money on deposit?
A) 186
B) 51
C) 183
D) 191
E) 190

Free

Multiple Choice

Q 6Q 6

A $10,000 90-day term deposit earns 4.5% interest. How much will the depositor have at maturity?
A) $11,825.00
B) $10,110.96
C) $10,112.50
D) $112.50
E) $110.96

Free

Multiple Choice

Q 7Q 7

A principal of $790 grew to $1,000 in 14 months. What annual rate of simple interest was earned?
A) 1.89%
B) 15.23%
C) 9.67%
D) 18.00%
E) 22.78%

Free

Multiple Choice

Q 8Q 8

What principal will grow to $12,031.25 at 7.5% interest in 15 months?
A) $10,000.00
B) $11,000.00
C) $15,000.00
D) $20,000.00
E) $21,000.00

Free

Multiple Choice

Q 9Q 9

If $450,000 is invested on June 3 at 7.75%, what will be the value of the investment on December 11?
A) $468,250
B) $466,625
C) $632,497
D) $432,461
E) $484,875

Free

Multiple Choice

Q 10Q 10

A 9-month term deposit, earning interest at 7%, was worth $72,559 when it reached maturity today. How much had been invested at the beginning of the term?
A) $76,368
B) $68,940
C) $72,552
D) $67,480
E) $70,000

Free

Multiple Choice

Q 11Q 11

Determine the amount of (simple) interest that would be earned over eight months at 26% on an investment of $43,500.
A) $11,309.99
B) $2,352.48
C) $7,540.00
D) $6,786.00
E) $5,367.03

Free

Multiple Choice

Q 12Q 12

How many days would it take for an investment of $9,000 to grow to $10,000 at 17%?
A) 214
B) 239
C) 126
D) 53
E) 66

Free

Multiple Choice

Q 13Q 13

Calculate the amount of interest that would be earned on an account of $47,500 if it earned 6.4% for 293 days.
A) $89,072
B) $3,040
C) $2,440
D) $17,442
E) $11,298

Free

Multiple Choice

Q 14Q 14

Calculate the amount of interest that would be earned on an account of $59,500 at 7.2% for 133 days.
A) $4,284
B) $1,561
C) $1,013
D) $2,229
E) $3,771

Free

Multiple Choice

Q 15Q 15

Calculate the amount of interest that would be earned on an account of $216,000 if it earned 5.15% for 27 days.
A) $11,298
B) $11,124
C) $823
D) $1,744
E) $2,110

Free

Multiple Choice

Q 16Q 16

Calculate the amount of interest that would be earned on an account of $344,000 if it earned 4.95% for 37 days.
A) $17,028
B) $11,124
C) $991
D) $1,726
E) $2,110

Free

Multiple Choice

Q 17Q 17

How much interest could you earn over 7 months on an investment of $49,000 at 14.75%?
A) $28,583
B) $422
C) $5,059
D) $508
E) $4216

Free

Multiple Choice

Q 18Q 18

How much interest could you earn, over 5 months on an investment of $94,000 at 17.75%?
A) $39,167
B) $6,952
C) $8,342
D) $993
E) $4,216

Free

Multiple Choice

Q 19Q 19

How much interest could you earn over 2 months on an investment of $82,500 at 23.5%?
A) $3,231
B) $9,694
C) $6,942
D) $714
E) $4,216

Free

Multiple Choice

Q 20Q 20

After how many days will a loan of $888 at 15% amount to $1554 (including accrued interest)?
A) 1825 days
B) 365 days
C) 100 days
D) 2,025 days
E) 525 days

Free

Multiple Choice

Q 21Q 21

Calculate the maturity value of an investment of $22,500 after 9 months at 13.45%.
A) $20,438.29
B) $4,736.25
C) $2,269.69
D) $27,236.25
E) $24,769.69

Free

Multiple Choice

Q 22Q 22

Calculate the maturity value of a loan of $6,875 after 239 days at 18.3%.
A) $7,698.81
B) $7,991.81
C) $6,051.19
D) $8,238.13
E) $8,769.81

Free

Multiple Choice

Q 23Q 23

Robert placed $7,000 in a 10-month term deposit paying 6.25%. How much will the term deposit be worth when it matures?
A) $3,645.83
B) $7,991.81
C) $7,364.58
D) $6,653.46
E) $7,769.89

Free

Multiple Choice

Q 24Q 24

After 7 months how much interest would I have to pay on a loan of $300 if the rate of interest was 32%?
A) $96.00
B) $47.50
C) $36.67
D) $56.00
E) $69.74

Free

Multiple Choice

Q 25Q 25

How much money would one have to invest today at 18.75% in order to have a total of $20,000 in 9 months?
A) $16,250
B) $23,750
C) $22,813
D) $17,534
E) $19,122

Free

Multiple Choice

Q 26Q 26

How long will it take to earn $542.40 interest on an investment of $6,400 at 11.3%?
A) 7.5 months
B) 8.0 months
C) 8.5 months
D) 9.0 months
E) 9.5 months

Free

Multiple Choice

Q 27Q 27

What simple annual interest rate would you need to earn $2,000 interest in 147 days on an investment of $49,000?
A) 19.33%
B) 40.82%
C) 10.13%
D) 21.44%
E) 7.85%

Free

Multiple Choice

Q 28Q 28

After 4 months how much interest would I have to pay on a loan of $500 if the rate of interest was 22%?
A) $11.25
B) $27.50
C) $36.67
D) $110.00
E) $39.74

Free

Multiple Choice

Q 29Q 29

If $59,200 grows to $60,000 in 41 days what simple annual interest rate was earned?
A) 12.03%
B) 11.87%
C) 13.51%
D) 17.48%
E) 10.16%

Free

Multiple Choice

Q 30Q 30

Calculate the amount of money that would have to be invested at 8.5% to earn monthly interest of $3,000?
A) $255,000
B) $352,941
C) $355,491
D) $423,529
E) $521.449

Free

Multiple Choice

Q 31Q 31

How much interest would one earn over 200 days on an investment of $95,000 at an interest rate of 14%?
A) $1,023
B) $5,889
C) $7,021
D) $7,288
E) $13,300

Free

Multiple Choice

Q 32Q 32

How long will it take for an investment of $9,000 at 3.75% to earn interest of $250?
A) 74 days
B) 163 days
C) 218 days
D) 270 days
E) 741 days

Free

Multiple Choice

Q 33Q 33

On March 14 Lisa invested in a 200-day term deposit. On what date will it mature?
A) January 16
B) March 23
C) August 24
D) September 30
E) November 7

Free

Multiple Choice

Q 34Q 34

How many days will it take for an investment of $5,500 to earn $602.74 interest at 16%?
A) 68
B) 22
C) 230
D) 250
E) 4564

Free

Multiple Choice

Q 35Q 35

Fred puts $5,475 into a term deposit on May 15

^{th}. The deposit earns a simple interest rate of 4%. If the term deposit will mature on August 14^{th}, how much interest will Fred earn? A) $35.40 B) $24.80 C) $36.00 D) $36.60 E) $54.60Free

Multiple Choice

Q 36Q 36

John borrowed $1500 at 9.5% on October 10, 2004. On what date did the amount owed first exceed $1565?
A) March 19, 2005
B) March 23, 2005
C) March 26, 2005
D) March 30, 2005
E) March 17, 2005

Free

Multiple Choice

Q 37Q 37

Morton purchased a 165-day Guaranteed Investment Certificate on October 11. On what date will it mature?
A) January 11 of the following year.
B) March 25 of the following year.
C) May 5 of the following year.
D) July 3 of the following year.
E) October 11 of the following year.

Free

Multiple Choice

Q 38Q 38

What was the simple interest rate if an investment of $35,000 earned interest of $250 between April 4 and May 23?
A) 2.66%
B) 5.32%
C) 7.14%
D) 8.00%
E) 9.89%

Free

Multiple Choice

Q 39Q 39

What annual simple interest rate would be needed for $55,000 to grow to $60,000 over a term of 295 days?
A) 12.34%
B) 10.31%
C) 11.25%
D) 9.09%
E) 8.33%

Free

Multiple Choice

Q 40Q 40

How much money would I have to invest at 6 ½% to earn interest of $4,500 per month?
A) $830,769
B) $692,308
C) $462,963
D) $777,667
E) $103,772

Free

Multiple Choice

Q 41Q 41

How much money would I have to invest at 9 ½% to earn interest of $9,200 per month?
A) $1,830,769
B) $2,306,224
C) $1,162,105
D) $5,777,667
E) $1,903,772

Free

Multiple Choice

Q 42Q 42

How many months would it take to earn $1,650 interest on a deposit of $44,000 at 7 ½%?
A) 4.5 months
B) 12 months
C) 6 months
D) 5 months
E) ½ month

Free

Multiple Choice

Q 43Q 43

How many months would it take to earn $3,570 interest on a deposit of $84,000 earning 8 ½%?
A) 7.5 months
B) 12 months
C) ¾ month
D) 9 months
E) 6 months

Free

Multiple Choice

Q 44Q 44

How many months would it take to earn $3,300 interest on a deposit of $84,000 at 9 ½%?
A) 4.14 months
B) 4.96 months
C) 11.2 months
D) 15.3 months
E) 25.4 months

Free

Multiple Choice

Q 45Q 45

Calculate the simple interest rate at which one can earn $1,500 per day interest on an investment of $7,500,000.
A) 2.00%
B) 9.67%
C) 5.00%
D) 6.67%
E) 7.30%

Free

Multiple Choice

Q 46Q 46

Calculate the simple interest rate at which one can earn $2,200 per day interest on an investment of $8,500,000.
A) 9.45%
B) 25.86%
C) 3.86%
D) 13.61%
E) 7.30%

Free

Multiple Choice

Q 47Q 47

Calculate the simple interest rate at which one can earn $500 per day interest on an investment of $1,800,000.
A) 9.45%
B) 28.00%
C) 10.14%
D) 12.91%
E) 25.30%

Free

Multiple Choice

Q 48Q 48

What simple interest rate was used if Rocco charged Squirrel $350 interest on a loan of $2,000 for 41 days?
A) 70%
B) 156%
C) 14.35%
D) 15.58%
E) 175%

Free

Multiple Choice

Q 49Q 49

What simple interest rate was used if Eddie charged Meatball $700 interest on a loan of $5,000 for 26 days?
A) 217%
B) 156%
C) 14%
D) 88%
E) 197%

Free

Multiple Choice

Q 50Q 50

How long would it take for a $25,000 investment to earn $2,000 interest at 13.5%?
A) 271 days
B) 125 days
C) 59 days
D) 217 days
E) 169 days

Free

Multiple Choice

Q 51Q 51

How long would it take for a $45,000 investment to earn $6,000 interest at 17.5%?
A) 115 days
B) 77 days
C) 95 days
D) 377 days
E) 278 days

Free

Multiple Choice

Q 52Q 52

Cindy borrowed $750 from Clare on April 17 at an interest rate of 15%. On June 30 of the same year, Clare repaid the loan with interest. How much interest should she have paid?
A) $22.81
B) $21.63
C) $28.13
D) $112.50
E) $90.87

Free

Multiple Choice

Q 53Q 53

Ethel invested $3,450 of Fred's money on February 3. Lucy had promised Ethel that the investment would earn an interest rate of 55%. On February 27 of the same year, Ethel cashed in her investment and received the interest as Lucy had promised. How much interest had she earned?
A) $124.77
B) $189.75
C) $218.63
D) $64.98
E) $90.87

Free

Multiple Choice

Q 54Q 54

Carly borrowed $2,500 from Clare on July 18 at an interest rate of 8%. On March 7 of the following year, Carly repaid the loan with interest. How much interest should she have paid?
A) $72.88
B) $21.63
C) $127.12
D) $112.50
E) $90.87

Free

Multiple Choice

Q 55Q 55

Carly borrowed $450 from Jenn on August 24 at an interest rate of 11%. On January 11 of the following year, Carly repaid the loan with interest. How much interest should she have paid?
A) $22.81
B) $12.38
C) $21.63
D) $18.99
E) $90.87

Free

Multiple Choice

Q 56Q 56

How much money would have to be invested from June 4 until December 22 at 13%, in order to earn $750 in interest?
A) $12,840
B) $5,769
C) $2,186
D) $10,477
E) $5,151

Free

Multiple Choice

Q 57Q 57

How much money would have to be invested from December 22 until June 4 at 12% in order to earn $750 in interest?
A) $12,840
B) $13,910
C) $6,250
D) $10,477
E) $15,151

Free

Multiple Choice

Q 58Q 58

How much money would have to be invested from November 22 until June 29 of the following year at 19%, in order to earn $950 in interest?
A) $8,333
B) $12,500
C) $5,000
D) $11,351
E) $6,306

Free

Multiple Choice

Q 59Q 59

If $20,000 was invested 82 days ago at an interest rate of 13.75%, what would be the value of the investment today?
A) $19,401
B) $20,618
C) $22,750
D) $20,000
E) $26,306

Free

Multiple Choice

Q 60Q 60

If, on March 11, $12,000 was placed in an investment earning an interest rate of 16%, on what day will the amount of interest earned reach $1,000?
A) Jul. 10
B) Jan.19
C) Apr. 13
D) Nov. 1
E) Sept. 18

Free

Multiple Choice

Q 61Q 61

Seven months ago Julie received some money for her birthday and she immediately deposited it into an account earning 6.5%. Today the value of that deposit has reached $4,259.88. How much did she deposit 7 months ago?
A) $1,556.20
B) $4,104.26
C) $4,098.36
D) $3,982.99
E) $2,646.45

Free

Multiple Choice

Q 62Q 62

How much money would have to be deposited on March 11 into an account earning a simple interest rate of 9.5% if the goal is to have the deposit grow to $12,000 by November 1?
A) $10,860.00
B) $11,175.45
C) $14,098.36
D) $11,308.33
E) $11,497.44

Free

Multiple Choice

Q 63Q 63

At what simple annual interest rate would $835 grow to $900 in 5 months?
A) 16.7%
B) 4.5%
C) 7.8%
D) 18.7%
E) 17.3%

Free

Multiple Choice

Q 64Q 64

At what simple annual interest rate would $1,896 grow to $2,000 in 300 days?
A) 6.7%
B) 8.5%
C) 7.8%
D) 5.5%
E) 6.3%

Free

Multiple Choice

Q 65Q 65

An investment of $ 19,250 grew to $20,000 between March 26 and October 10. What simple annual interest rate did the investment earn?
A) 3.9%
B) 8.5%
C) 6.9%
D) 5.5%
E) 7.2%

Free

Multiple Choice

Q 66Q 66

How many months would it take for $3,500 to grow to $4,000 at 15%?
A) 9.5
B) 11.4
C) 348
D) 10.0
E) 6.6

Free

Multiple Choice

Q 67Q 67

How many days would it take for $9,500 to grow to $10,000 at 7%?
A) 75
B) 188
C) 261
D) 365
E) 275

Free

Multiple Choice

Q 68Q 68

On what day will the amount of interest earned reach $5,000 if $250,000 was invested at an interest rate of 11% on June 23?
A) Mar. 8
B) Jul. 10
C) Aug. 29
D) Nov. 1
E) Dec. 18

Free

Multiple Choice

Q 69Q 69

On April 3 Artie invested $75,000 and by October 27 he had earned interest of $10,500. What simple interest rate had he earned?
A) 86.00%
B) 32.34%
C) 71.42%
D) 14.00%
E) 24.69%

Free

Multiple Choice

Q 70Q 70

Dalton loaned $550,000 to Doc Holliday on August 24. On February 8 of the following year, Doc paid to Dalton the $65,000 interest that had accumulated on the debt up to that time. What simple rate of interest was Dalton charging on this loan?
A) 21.90%
B) 25.68%
C) 21.79%
D) 74.32%
E) 24.69%

Free

Multiple Choice

Q 71Q 71

Albert loaned $850,000 to Batman on March 17. On January 9 of the following year, Batman paid to Albert the $49,000 of interest that had accumulated on the debt up to that time. What simple rate of interest was Albert charging on this loan?
A) 7.06%
B) 25.68%
C) 31.40%
D) 9.65%
E) 17.34%

Free

Multiple Choice

Q 72Q 72

On September 4 Fred made a $25,000 loan to Ricky for an investment that was guaranteed to earn an interest rate of 40%. On March 11 of the following year, Ricky cashed in his investment and received the interest as had been promised. How much interest had he earned?
A) $2,965
B) $5,151
C) $2,186
D) $4,849
E) $16,083

Free

Multiple Choice

Q 73Q 73

On December 19 Jerry's $800 deposit matured at $848.22. It had been earning 8%. What was the date that he made the deposit?
A) Oct. 2
B) Jan. 1
C) Mar. 19
D) Sept. 20
E) Apr. 1

Free

Multiple Choice

Q 74Q 74

Barkley's Bookkeeper is accounting for a cheque that was written for $29,674. It represents full payment of principal plus interest for a loan that was taken out for 128 days at 8.5%. How much of the $ 29,674 was interest?
A) $2,881.51
B) $884.52
C) $1,768.33
D) $858.93
E) $726.98

Free

Multiple Choice

Q 75Q 75

If the maturity value of an investment which paid 13.9% was $400,000 after 7 months, how much of that amount was interest?
A) $30,001
B) $55,600
C) $32,433
D) $67,888
E) $27,999

Free

Multiple Choice

Q 76Q 76

Grandma Jones has $300,000 in a bank account, which pays her interest at 3%. What is the largest amount of money that she could take out now and still leave enough in the account so that she can earn $600 per month in interest?
A) $60,000
B) $100,000
C) $280,000
D) $240,000
E) $9,000

Free

Multiple Choice

Q 77Q 77

Grandpa Smith has $200,000 in a bank account, which pays him interest at 4%. What is the largest amount of money that he could take out now and still leave enough in the account so that he can earn $500 per month in interest?
A) $60,000
B) $50,000
C) $120,000
D) $150,000
E) $30,000

Free

Multiple Choice

Q 78Q 78

After 7 months at an interest rate of 13%, an investment matured today at a value of $80,000. How much of the $80,000 is interest?
A) $12,065
B) $10,400
C) $6,067
D) $7,436
E) $5,639

Free

Multiple Choice

Q 79Q 79

On May 27, Kristina made an investment that earned an interest rate of 9.4%. By November 6 the investment's value had increased to $77,000. What amount of interest had Kristina earned?
A) $3,619
B) $3,102
C) $3,232
D) $5,112
E) $7,238

Free

Multiple Choice

Q 80Q 80

Susan wants a 120-day extension on a payment of $2,000. If she and her creditor agree that money can now earn 6%, what amount should she pay at the later date?
A) $1,961.31
B) $2,038.69
C) $2,079.95
D) $2,039.45
E) $2,080.55

Free

Multiple Choice

Q 81Q 81

Ace Furniture will give you 8 months, interest free, before you have to pay for a $2,000 sofa. Based on the fact that Ace pays 14% on its short term debt, what would be a reasonable amount of cash for you to offer them at the time of purchase?
A) $2,187
B) $1,829
C) $1,720
D) $1,813
E) $2,000

Free

Multiple Choice

Q 82Q 82

If you pay your $3,000 tuition 3 months before it is due, the local college will give you a $250 "scholarship" reducing your tuition payment to $2,750. What is the annual simple interest rate to which this incentive is equal?
A) 36.4%
B) 9.1%
C) 8.3%
D) 33.3%
E) 27.3%

Free

Multiple Choice

Q 83Q 83

If money is worth 14 %, what payment on August 29 would be equal in value to a payment of $86,900 due on January 31 of the following year?
A) $74,734
B) $92,066
C) $81,734
D) $76,519
E) $82,024

Free

Multiple Choice

Q 84Q 84

What payment 5 months from now would be equivalent in value to a $4,000 payment due today and a $3,000 payment due 7 months from now? Money can earn 6.5%.
A) $7,455.01
B) $6,923.82
C) $7,189.58
D) $7,076.18
E) $6,544.98

Free

Multiple Choice

Q 85Q 85

Payments of $100,000 and $150,000 are due to be paid in 45 days and 75 days respectively. If money is worth 7.3%, what is the combined economic value today of the two payments?
A) $574,734
B) $246,891
C) $249,452
D) $276,519
E) $229,567

Free

Multiple Choice

Q 86Q 86

Patrick has a contract that will pay him $3,500 in 11 months. If money can earn 15%, what will be the value of that contract three months from now?
A) $2,975
B) $3,077
C) $3,150
D) $3,182
E) $3,355

Free

Multiple Choice

Q 87Q 87

Mike is supposed to pay $750 to Sarah, but wishes to delay it for 48 days. Determine the amount Sarah should expect in 48 days if the rate of interest is 6.55%
A) $756.46
B) $765.66
C) $771.55
D) $793.12
E) $795.61

Free

Multiple Choice

Q 88Q 88

David is supposed to pay $975 to Mark, but wishes to delay it for 6 months. Determine the amount Mark should expect in 6 months if the rate of interest is 4.75%
A) $992.68
B) $998.16
C) $1,002.45
D) $1,007.67
E) $1,012.37

Free

Multiple Choice

Q 89Q 89

Michaela is supposed to pay $15,000 to Mahmoud, but due to financial constraints, has to be delayed by one quarter. Determine the future amount if the rate of interest is 11.45%
A) $14,618.43
B) $14,727.31
C) $15,429.38
D) $15,631.42
E) $17,727.66

Free

Multiple Choice

Q 90Q 90

If $4,000 is to be paid now. What amount would be equivalent 97 days earlier given an interest rate of 4.25% per year?
A) $3,955.33
B) $3,844.22
C) $3,733.11
D) $3,622.00
E) $4,421.67

Free

Multiple Choice

Q 91Q 91

If $7,500 is to be paid now, what amount would be equivalent 8 months earlier given an interest rate of 3.88% per year?
A) $7,621.85
B) $7,310.89
C) $6,822.14
D) $6,219.65
E) $7,210.33

Free

Multiple Choice

Q 92Q 92

$180 is to be paid now. What amount would be equivalent 3 quarters earlier given an interest rate of 6.8% per year?
A) $184.33
B) $212.14
C) $171.27
D) $166.81
E) $191.54

Free

Multiple Choice

Q 93Q 93

John can purchase an airline ticket for $540 now or can pay $578 in 90 days. If interest is 6.6%, determine whether John should purchase the ticket now or in 90 days.
A) Buy now - savings of $28.74
B) Buy now - savings of $34.22
C) No difference between the two options
D) Buy later - savings of $28.74
E) Buy later - savings of $34.22

Free

Multiple Choice

Q 94Q 94

Alain can purchase an airline ticket for $500 now or can pay $525 in 3 months. If interest is 2.5%, determine whether Alain should purchase the ticket now or in 3 months.
A) Buy now - Savings of $33.88
B) Buy now - Savings of $21.74
C) No difference between two options
D) Buy later - savings of $33.88
E) Buy later - savings of $21.74

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Q 95Q 95

A department store is offering a washer/dryer for $1480 now or can pay $1500 in 120 days. If interest is 8.52%, determine whether a customer should purchase now or in 120 days.
A) Buy now - Savings of $20.87
B) Buy now - Savings of $22.38
C) No difference between two options
D) Buy later - savings of $20.87
E) Buy later - savings of $22.38

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Multiple Choice

Q 96Q 96

A department store is offering a television for $720 now or can pay $725 in 90 days. If interest is 10%, determine whether a customer should purchase now or in 90 days.
A) Buy now - Savings of $10.52
B) Buy now - Savings of $12.45
C) No difference between two options
D) Buy later - savings of $10.52
E) Buy later - savings of $12.45

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Multiple Choice

Q 97Q 97

If money if worth $650 now and $675 in 3 months, determine the rate of return that an investor would be indifferent between the two options.
A) 15.38%
B) 14.22%
C) 13.85%
D) 12.52%
E) 10.60%

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Multiple Choice

Q 98Q 98

If money if worth $985 now and $1005 in two months, determine the rate of return that an investor would be indifferent between the two options.
A) 15.41%
B) 14.62%
C) 13.83%
D) 12.18%
E) 13.44%

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Multiple Choice

Q 99Q 99

If money if worth $1,150 now and $1,205 in 240 days, determine the rate of return that an investor would be indifferent between the two options.
A) 9.15%
B) 8.38%
C) 8.41%
D) 7.50%
E) 7.27%

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Q 100Q 100

If money if worth $1,500 now and $1,540 in 90 days, determine the rate of return that an investor would be indifferent between the two options.
A) 12.45%
B) 11.23%
C) 10.81%
D) 9.63%
E) 8.85%

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Q 101Q 101

Compare the economic values of two options given an annual rate of 6.6%. Option 1 - $900 in 90 days and $1,200 in 120 days. Option 2 - $850 in 240 days and $1,390 in 320 days. Given the following information, choose the best option.
A) Option 1 - benefit of $22.35
B) Option 1 - benefit of $68.51
C) No difference between options
D) Option 2 - benefit of $22.35
E) Option 2 - benefit of $68.51

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Multiple Choice

Q 102Q 102

Compare the economic values of two options given an annual rate of 8.5%. Option 1 - $900 in 60 days and $1,200 in 180 days. Option 2 - $925 in 90 days and $1,050 in 120 days. Given the following information, choose the best option.
A) Option 1 - benefit of $111.85
B) Option 1 - benefit of $138.45
C) No difference between options
D) Option 2 - benefit of $111.85
E) Option 2 - benefit of $138.45

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Multiple Choice

Q 103Q 103

Compare the economic values of two options given an annual rate of 9.25%. Option 1 - $900 in 5 months and $400 in 9 months. Option 2 - $550 in 7 months and $825 in 10 months. Given the following information, choose the best option.
A) Option 1 - benefit of $52.35
B) Option 1 - benefit of $47.15
C) No difference between options
D) Option 2 - benefit of $52.35
E) Option 2 - benefit of $47.15

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Multiple Choice

Q 104Q 104

Compare the economic values of two options given an annual rate of 4.5%. Option 1 - $1,100 in 1 month and $850 in 3 months. Option 2 - $1,050 in 6 months and $925 in 9 months. Given the following information, choose the best option.
A) Option 1 - benefit of $14.74
B) Option 1 - benefit of $24.74
C) No difference between options
D) Option 2 - benefit of $14.74
E) Option 2 - benefit of $24.74

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Multiple Choice

Q 105Q 105

Payments of $6,000 six months ago and $3,000 one month ago are to be replaced by $5,000 in 9 months and another payment today. If interest is 4.2% annually, determine the price of the payment today.
A) $4,289.19
B) $4,372.66
C) $5,433.80
D) $5,526.32
E) $7,428.37

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Q 106Q 106

Payments of $7,000 120 days ago and $3,000 90 days ago are to be replaced by $4,500 60 days from now and a final payment 240 days from now. If interest is 5.95% annually, determine the value of the final payment.
A) $4,851.61
B) $4,926.86
C) $5,424.38
D) $5,727.60
E) $5,940.14

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Q 107Q 107

Two payments of $5,000 60 days ago and $5,000 in 120 days are to be replaced by a payment now and $4,000 in 90 days. If interest is 3.2% annually, determine the amount to pay now, if the focal point is today.
A) $6,012.40
B) $6,018.50
C) $6,005.57
D) $6,003.20
E) $5,996.60

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Q 108Q 108

Payments of $2,500 due now and $6,500 due in 90 days are to be replaced by a $4,000 payment due in 120 days and a final payment due in 180 days from now. If interest is 5.5% annually, determine the value of the final payment if the focal point is 180 days from now.
A) $5,220.67
B) $5,207.38
C) $5,163.45
D) $5,119.80
E) $5,087.63

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Q 109Q 109

Two payments of $1,000 now and $3,000 in 6 months are to be replaced by $2,500 in 4 months and another in 9 months. If the rate of interest is 6.3% annually, determine the value of the final payment in 9 months if the focal point is in 9 months.
A) $1,532.67
B) $1,528.875
C) $1,502.65
D) $1,498.13
E) $1,486.86

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Multiple Choice

Q 110Q 110

Two payments of $8,000 in 60 days and $5,000 in 90 days are to be replaced by a payment now and another payment of $2,500 in 30 days. If interest is 7.3% annually, determine the value of the payment now.
A) $10,658.12
B) $10,522.44
C) $10,485.31
D) $10,331.64
E) $10,280.48

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Multiple Choice

Q 111Q 111

$8,000 due now is to be replaced by three equal payments in 2, 6 and 9 months from today. If interest is 6.75% annually, determine the value of the payments.
A) $2,145.62
B) $2,381.06
C) $2,573.25
D) $2.648.67
E) $2,750.99

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Multiple Choice

Q 112Q 112

A loan of $1,580 bearing interest at 15% is due nine months from now. What single payment three months before the loan is due will put the lender in the same financial position as the scheduled payment at maturity? Assume that money can earn 12%.
A) $1,658.25
B) $1,533.98
C) $1,706.55
D) $1,490.57
E) $1,642.38

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Q 113Q 113

Payments of $700 due three months ago and $1,000 six months from now are to be replaced by one equivalent payment four months from now. What is the size of this payment if money can earn 7%?
A) $1,661.01
B) $1,700.72
C) $1,708.72
D) $1,717.05
E) $1,740.25

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Q 114Q 114

Payments of $1,400 and $2,500 were due 90 days ago and 120 days ago, respectively. What is the combined economic value today of these payments if money can earn 9%?
A) $3,943.58
B) $3,859.22
C) $4,005.04
D) $4,111.11
E) $3,797.76

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Q 115Q 115

$12,000 due today is to be replaced by three equal payments in 30, 60 and 90 days from today. If interest is 8.4% annually, determine the value of the payments. Use a focal date of today.
A) $4,055.87
B) $4,165.26
C) $4,276.65
D) $4,387.42
E) $4,598.57

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Q 116Q 116

$22,000 was due 90 days ago. It is now to be repaid in three equal payments in 30, 60 and 180 days from now. If interest is 5.92% annually, determine the value if the focal date is today.
A) $8,627.35
B) $7,935.12
C) $7,727.54
D) $7,549.67
E) $7,182.67

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Multiple Choice

Q 117Q 117

$7,500 was due 3 months ago. It is now to be repaid in three equal payments in 4, 8 and 10 months from now. If interest is 3.85% annually, determine the value if the focal date is in 4 months.
A) $2,583.98
B) $2,678.32
C) $2,781.42
D) $2,934.55
E) $3,122.68

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Multiple Choice

Q 118Q 118

An $18,000 payment due in 300 days is to be replaced by three equal payments now, in 150 days and 250 days. Determine the value of the payments if interest is 10.2% annually, and the focal point is now.
A) $6,142.51
B) $5,913.75
C) $5,823.89
D) $5,738.38
E) $5,421.03

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Multiple Choice

Q 119Q 119

Mike borrowed $6,000 on August 15 at a rate of 9.3% annually. Two payments of $2,000 were made on September 1 and November 1 to reduce the loan. What amount should be paid on December 15 to pay off the loan?
A) $3,861.05
B) $2,110.58
C) $4, 258.23
D) $5, 815.01
E) $6,005.37

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Multiple Choice

Q 120Q 120

Two debt payments of $2,000 each are due now and nine months from now. If money is worth 8%, what single payment six months from now is required to settle the debt?
A) $4,042.34
B) $7,177.27
C) $6,127.48
D) $3,600.00
E) $4,040.78

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Multiple Choice

Q 121Q 121

What single payment one year from now will satisfy two obligations: $4,000 due today and $6,000 due 18 months from now? Assume that money can earn 14%.
A) $5,083.74
B) $5,000.00
C) $10,980.00
D) $10,167.48
E) $5,490.00

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Multiple Choice

Q 122Q 122

A $3,000 obligation due eight months from now is settled by two equal payments, one five months from now and the other nine months from now. If money can earn interest at 16%, what is the size of each payment? Use a focal date five months from now.
A) $3,038.46
B) $1,723.64
C) $861.82
D) $1,479.77
E) $2,959.54

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Multiple Choice

Q 123Q 123

Frankie's Furniture Mart has contracts from one customer who will pay $4,695 in 5 months and another customer who will pay $7,830 in 7 months. Frankie can sell the contracts today to Vinnie's finance company at a discount rate of 23.5%. How much money will Vinnie pay to Frankie today for the two contracts?
A) $11,162
B) $11,208
C) $12,525
D) $13,705
E) $14,058

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Multiple Choice

Q 124Q 124

A payment of $590 is now 93 days overdue. A second payment of $955 will be due and payable in 200 days. If money can earn an interest rate of 11%, what single amount, paid in 30 days, will be an equivalent replacement payment?
A) $1,507
B) $1,520
C) $1,545
D) $1,629
E) $1,783

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Multiple Choice

Q 125Q 125

A contract was signed eight months ago requiring the payment of $13,000 plus interest at 8% after one year. What two equal payments made today and four months from today are equivalent to the original contract? Assume that money is now worth 5%. Use four months from today as the focal date.
A) $7,020.00
B) $7,070.11
C) $6,446.28
D) $13,809.84
E) $7,078.02

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Q 131Q 131

How much interest will be earned on $5,000 in 5 months if the annual simple interest rate is 1.5%?

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Q 132Q 132

An invoice states that interest will be charged on overdue accounts at the rate of 1½% per month. What will be the interest charges on a $3,760 billing that is 3 months overdue?

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Q 133Q 133

The interest owed on a loan after 5 months was $292.50. If the simple interest rate charged on the loan was 0.9% per month, what was the amount borrowed?

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Q 134Q 134

How much must be placed in a 5-month term deposit earning 4.3%, simple interest, in order to earn $500 interest?

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Q 135Q 135

A five-month term deposit of $10,000 at the Scotiabank earned $75 in interest. What annual rate of simple interest did the deposit earn?

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Q 136Q 136

On June 26, 2013, $1000 was borrowed at an interest rate of 10.75%. On what date was the loan repaid if the amount of accrued interest was $63.91?

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Q 137Q 137

On June 26 Laura put $2,750 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 4.25%. How much interest will she earn on the term deposit?

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Q 138Q 138

Raimo borrowed $750 from Chris on October 30 and agreed to repay the debt with simple interest at the rate of 4.3% on May 10. How much interest was owed on May 10? Assume that February has 28 days.

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Q 139Q 139

Joyce had $2,149 in her daily interest savings account for the entire month of June. Her account was credited with interest of $2.65 on June 30 (for the exact number of days in June). What annual rate of simple interest did her balance earn?

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Q 140Q 140

Maia's chequing account was $329 overdrawn beginning on September 24. On October 9 she made a deposit that restored a credit balance. If she was charged overdraft interest of $2.50, what annual rate of simple interest was charged?

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Q 141Q 141

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

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Q 142Q 142

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

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Q 143Q 143

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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Q 144Q 144

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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Q 145Q 145

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

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Q 146Q 146

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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Q 147Q 147

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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Q 148Q 148

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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Q 149Q 149

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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Q 150Q 150

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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Q 151Q 151

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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Q 152Q 152

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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Q 153Q 153

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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Q 154Q 154

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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Q 155Q 155

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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Q 156Q 156

$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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Q 157Q 157

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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Q 158Q 158

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

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Q 159Q 159

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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Q 160Q 160

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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Q 161Q 161

Umberto borrowed $7,500 from Delores on November 7, 2013. When Umberto repaid the loan, Delores charged him $190.02 interest. If the rate of simple interest on the loan was 6.75%, on what date did Umberto repay the loan?

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Q 162Q 162

Jacques received the proceeds from an inheritance on March 15. He wants to set aside, in a term deposit on March 16, an amount sufficient to provide a $45,000 down payment for the purchase of a home on November 1. If the current interest rate on 181-day to 270-day deposits is 3.75%, what amount should he place in the term deposit?

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Q 163Q 163

If $3,702.40 earned $212.45 interest from September 17, 2014 to March 11, 2015, what rate of interest was earned?

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Q 164Q 164

What amount invested at 4.5% on November 19, 2014 had a maturity value of $10,000 on March 3, 2015?

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Q 165Q 165

Sumer put $10,000 in a 3-month term deposit at TD Canada Trust, earning a simple interest rate of 3.9% pa. After the 3 months, she invested the entire amount of the principal and interest from the first term deposit in a new 3-month term deposit earning the same rate of interest. How much interest did she earn on each term deposit? Why are the two interest amounts not equal?

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Q 166Q 166

Sergon has $5,000 to invest for six months. The rates offered on three-month and six-month term deposits at his bank are 3.5%, 3.8%, respectively. He is trying to choose between the six-month term deposit and two consecutive three-month term deposits. What would the simple interest rate on three-month term deposits have to be, three months from now, for Sergon to end up in the same financial position with either alternative? Assume that he would place both the principal and interest from the first three-month term deposit in the second three-month term deposit.

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Q 167Q 167

Evelyn put $15,000 into a 90-day term deposit at Laurentian Bank paying a simple interest rate of 3.2%. When the term deposit matured, she invested the entire amount of the principal and interest from the first term deposit into a new 90-day term deposit earning the same rate of interest. What total amount of interest did she earn on both term deposits?

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Q 168Q 168

Mario borrowed $6,000 on March 1 at a variable rate of interest. The interest rate began at 7.5%, increased to 8% effective April 17, and then fell by 0.25% effective June 30. How much interest will be owed on the August 1 repayment date?

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Q 169Q 169

How much will be required on February 1 to pay off a $3,000 loan advanced on the previous September 30 if the variable interest rate began the interval at 10.7%, rose to 11.2% effective November 2, and then dropped back to 11% effective January 1?

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Q 170Q 170

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 8.75%, rose to 9% effective July 1, and increased another 0.5% effective July 31, what was the principal amount of the loan?

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Q 171Q 171

The annual $3,600 membership fee at the Oak Meadows Golf Club is due at the beginning of the year. Instead of a single "lump" payment, a member can pay $1,600 at the start of the year and defer the $2,000 balance for five months by paying a $75 surcharge at the time of the second payment. Effectively, what annual rate of simple interest is Oak Meadows charging on the $2,000 deferred payment?

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Q 172Q 172

Today is March 25

^{th}. Snow tires that you need are available today at a sale price of $89.95 each. If you wait until October 1 to buy the tires, you will pay the full price of $107.50 each. If you buy the tires today, you will need to borrow money at 12% per annum simple interest. Should you buy the tires today or wait until October 1? Explain.Free

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Q 173Q 173

A&B Appliances sells a washer-dryer combination for $1535 cash. C&D Appliances offers the same combination for $1,595 with no payments and no interest for 6 months. Therefore, you can pay $1,535 now or invest the $1535 for 6 months and then pay $1,595. What value would the annual rate of return have to exceed for the second alternative to be your advantage?

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Q 175Q 175

What amount of money paid today is equivalent to $560 paid five months from now if money can earn 1.75% per annum?

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Q 176Q 176

What amount, seven months from now, is equivalent to $1215 today if money can be invested to earn 4.5%?

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Q 177Q 177

What payment, 174 days from now, is equivalent to $5230 paid today? Assume that money is worth 5.25% per annum.

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Q 178Q 178

Patrick is scheduled to receive $1480 in 60 days from now. How much should he accept today as an equivalent payment if his money can earn 6.75%?

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Q 179Q 179

What amount received on January 13 is equivalent to $1,000 received on the preceding August 12 if money can earn 5.5%?

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Q 180Q 180

Rasheed wishes to postpone for 90 days the payment of $450 that he owes to Roxanne. If money now earns 4.75%, what amount can he reasonably expect to pay at the later date?

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Q 181Q 181

Avril owes Value Furniture $1,600, which is scheduled to be paid on August 15. Avril has surplus funds on June 15 and will settle the debt early if Value Furniture will make an adjustment reflecting the current short-term interest rate of 3.25%. What amount should be acceptable to both parties?

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Q 182Q 182

What amount on January 23 is equivalent to $1,000 on the preceding August 18 if money can earn 6.5%?

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Q 183Q 183

What annual rate of return would money have to earn for $1975.00 to be equivalent to $1936.53 paid 100 days earlier?

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Q 184Q 184

At what rate can money be invested if $2370.00 is equivalent to $2508.79 paid 190 days later?

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Q 185Q 185

A late payment of $850.26 was considered equivalent to the originally scheduled payment of $830.00, allowing for interest at 9.9%. How many days late was the payment?

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Q 186Q 186

Nicholas can purchase the same furniture from Store A for $2,495 cash or from Store B for $2,560 with nothing down and no payments or interest for 8 months. Which option should Nicholas choose if he can pay for the furniture by cashing in Canada Savings Bonds currently earning 3.9% per annum?

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Q 187Q 187

During its 50-50 Sale, Marpole Furniture will sell its merchandise for 50% down, with the balance payable in six months. No interest is charged for the first six months. What 100% cash price should Marpole accept on a $1,845 chesterfield and chair set if Marpole can earn a rate of return of 2.75% on its funds?

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Q 188Q 188

Sheldrick Contracting owes Western Equipment $60,000 payable on June 14. In late April, Sheldrick has surplus cash and wants to settle its debt. If Western can earn 3.6% on its money, how much should Western accept on April 29?

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Q 189Q 189

We frequently hear a news item that goes something like: "Joe Superstar signed a 5-year deal worth $25 million. Under the contract he will be paid $3 million, $4 million, $5 million, $6 million and $7 million in successive years." In what respect is the statement incorrect? How should the value of the contract be calculated?

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Q 192Q 192

Calculate the combined equivalent value today of $500 due today and $300 due in three months. Assume that money can earn 95%.

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Q 193Q 193

Calculate the combined equivalent value in five months from now of a payment stream consisting of $1000 payable today and $1500 payable in five months? Assume money can earn 5.5%.

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Q 194Q 194

Payments of $850 and $1,140 were scheduled to be paid today and nine months from now, respectively. What total payment today would place the payee in the same financial position as the scheduled payments? Money can earn 8.25%.

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Q 195Q 195

Payments of $900 and $1000 are due in 30 days and 210 days respectively. If money can be invested at 7.75% what single payment 90 days from now is equivalent to that payment stream?

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Q 196Q 196

A payment stream consists of three payments: $1000 today, $1500 in 70 days, and $2000 in 210 days. What single payment, 60 days from now, is economically equivalent to the payment stream if money can be invested at a rate of 8.5%?

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Q 197Q 197

Two payments of $1,300 and $1,800 were scheduled to be paid five months ago and three months from now, respectively. The $1,300 payment has not yet been made. What single payment at a focal date one month from now would be equivalent to the two scheduled payments if money can earn 4.5 %?

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Q 198Q 198

A $3000 loan at 5% was made on March 1. Two payments of $1000 each were made on May 1 and June 1. What payment on July 1 will pay off the loan?

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Q 199Q 199

A $1000 loan at 3% was repaid by two equal payments made 30 days and 60 days after the date of the loan. Determine the amount of each payment.

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Q 200Q 200

Two equal payments, 50 days and 150 days after the date of the loan, paid off a $3000 loan at 8.25%. What was the amount of each payment?

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Q 201Q 201

Payments of $1,000 and $7,500 were originally scheduled to be paid five months ago and four months from now, respectively. The first payment was not made. What payment two months from now is equivalent to the scheduled payment if money can earn 6.25%?

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Q 202Q 202

Eight months ago, Louise agreed to pay Thelma $750 and $950 six and twelve months, respectively, from the date of the agreement. With each payment, Louise agreed to pay interest on the respective principal at the rate of 9.5% from the date of the agreement. Louise failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Thelma be willing to accept if money can earn 7.75%?

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Q 203Q 203

Payments of $2,600, due 50 days ago, and $3,100, due in 40 days, are to be replaced by $3,000 today and another payment in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.25%. Use 30 days from now as the focal date.

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Q 204Q 204

Three payments of $2,000 (originally due six months ago, today, and six months from now) have been renegotiated to two payments: $3,000 one month from now and a second payment due in four months. What must the second payment be for the replacement payments to be equivalent to the originally scheduled payments? Assume that money can earn an interest rate of 4%. Choose a focal date four months from now.

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Q 205Q 205

What should be the amount of each payment if a $2500 loan at 8.75% is to be repaid by three equal payments due two months, four months, and seven months following the date of the loan?

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Q 206Q 206

The simple interest rate on a $5,000 loan is 7%. The loan is to be repaid by four equal payments on dates 100, 150, 200, and 250 days from the date on which the loan was advanced. What is the amount of each payment?

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Q 207Q 207

Anthony borrowed $7,500 on September 15 and agreed to repay the loan by three equal payments on the following November 10, December 30, and February 28. Calculate the payment size if the interest rate on the loan was 8.75%.

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Q 208Q 208

Nine months ago, Muriel agreed to pay Aisha $1,200 and $800 on dates 6 and 12 months, respectively, from the date of the agreement. With each payment Muriel agreed to pay interest at the rate of 8.5% from the date of the agreement. Muriel failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Aisha be willing to accept if money can earn 6.75%?

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Q 209Q 209

A $9,000 loan is to be repaid in three equal payments occurring 60, 180, and 300 days, respectively, after the date of the loan. Calculate the size of these payments if the interest rate on the loan is 7.25%. Use the loan date as the focal date.

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Q 219Q 219

What will be the maturity value in 15 months of a $4,500 loan at a simple interest rate of 11.9%?

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Q 220Q 220

Cecille placed $17,000 in a 270-day term deposit earning 4.25%. How much will the bank pay Cecille on the maturity date?

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Q 221Q 221

What amount of interest will be earned on $1,500 invested for 18 months at an interest rate of 4%?

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Q 222Q 222

How much will have to be deposited to earn $600 interest over two years at an interest rate of 3%?

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Q 224Q 224

An investment earned $156.25 interest in 30 months. What was the simple annual rate of interest?

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Q 225Q 225

The interest earned on a $7,500 investment was $1181.25. What was the term in months if the rate of interest was 3.5%?

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Q 226Q 226

What will be the maturity value of $3,300 invested at an interest rate of 2.75% in 15 months?

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Q 227Q 227

Karen borrowed $2,000 at 10¼% on July 13. On what date would the amount owed first exceed $2,100?

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Q 231Q 231

On what date did a corporation borrow $350,000 at 7.5% from its bank if the debt was settled by a payment of $356,041 on February 28?

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Q 232Q 232

Judith received the proceeds from an inheritance on March 25. She wants to set aside enough on March 26 so that she will have $20,000 available on October 1 to purchase a car when the new models are introduced. If the current interest rate on 181 to 270-day term deposits is 3.75%, what amount should she place in the term deposit?

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Q 233Q 233

Village Finance Co. advanced three loans to Kamiko-$2,200 on June 23, $1,800 on August 5, and $1,300 on October 31. Simple interest at 7.25% was charged on all three loans, and all were repaid on December 31 when some bonds that she owned matured. What total amount was required to pay off the loans?

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Q 234Q 234

Bruce borrowed $6,000 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 10.75%, on what date did Bruce repay the loan? Assume that February has 28 days.

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Q 235Q 235

Sharon's $9,000 term deposit matured on March 16, 2014. 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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Q 236Q 236

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:
Investment date Amount invested Interest rate M
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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Q 237Q 237

Dominion Contracting invested surplus funds in term deposits. All were chosen to mature on April 1 when the firm intends to purchase a new grader.
What total amount will be available from the maturing term deposits on April 1 (of a leap year)?

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Q 238Q 238

Sam borrowed $1,250 on March 15 at an interest rate of 4.5%. Sam repaid the full amount plus the interest owed on September 1. How much did Sam repay?

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Q 239Q 239

Larissa earned $8.74 interest on $1,100 invested from January 11 to June 4. What annual rate of simple interest did she earn?

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Q 240Q 240

How much interest will an investment of $5,075 earn in two years at an interest rate of 2.25%?

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Q 241Q 241

Sam earned $650 on an investment deposited at an interest rate of 3.25% for 30 months. How much was the original investment?

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Q 242Q 242

Marika deposited $2,100 on May 22. On September 10, she had $2,120.12. What simple interest rate per year did she earn?

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Q 243Q 243

What amount would have to be invested at a simple interest rate of 2.85% to grow to $2,529.28 in 150 days?

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Q 244Q 244

Kristina earned $33.70 at an interest rate of 2.5% from November 29 to April 1. What amount did she invest? Assume that February has 28 days.

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Q 245Q 245

Penny invested $4,500 on October 28 at a floating rate of interest that initially stood at 6.3%. Effective December 2, the rate dropped by ½% and then it declined another ¼% effective February 27. What total amount of principal plus interest will Penny receive when the investment matures on March 15? Assume that the new year is a leap year.

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Q 246Q 246

Marika earned $40.07 interest at 2.5% on $5,000 invested on April 7. On what date did her investment mature?

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Q 250Q 250

Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

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Q 251Q 251

Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

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Q 252Q 252

Three payments are scheduled as follows: $1,200 is due today, $900 is due in five months, and $1,500 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 5.9%? Use ten months from now as the focal date.

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Q 253Q 253

The first two of the following three payments were not made as scheduled. $1,200 was due seven months ago, $900 was due two months ago, and $1,500 is due in one month. The three payments are to be replaced by a single equivalent payment due three months from now. What should the payment be if money is worth 9.9%? Use three months from now as the focal date.

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Q 254Q 254

Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

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Q 255Q 255Determine a) whether the earlier or later payment has the greater economic value at the given interest rate and b) the interest rate at which the two payments would be equivalent:

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Q 256Q 256

What amount paid on September 24 is equivalent to $1,000 paid on the following December 1 if money can earn 3%?

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Q 257Q 257

A $3,000 payment is scheduled for 6 months from now. If money is worth 6.75%, calculate the payment's equivalent values at two-month intervals beginning today and ending one year from now.

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Q 258Q 258

Mr. and Mrs. Chan are considering two offers on a building lot that they own in a nearby town. One is for $49,000, consisting of $10,000 down and the balance to be paid in a lump payment in eight months. The second is for $50,000, with $10,000 down and the balance to be paid in 1 year. What rate of return must money earn for Mr. and Mrs. Chan to be indifferent between the two offers?

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Q 259Q 259

What interest rate must money earn for a payment of $1,389 on August 20 to be equivalent to a payment of $1,348 on the previous March 29?

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Q 263Q 263

What payment on August 19 is equivalent to a $1,000 payment on the preceding January 19, if the rate of interest is 4.5%?

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Q 264Q 264

A large retail store offers no payments, no interest for six months on all furniture and appliance purchases exceeding $1,500. If money can earn 3.5%, how much should the store accept as a payment today on furniture costing $1,850?

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Q 265Q 265

Sam has won a lottery. He can take $5,000 now or $5,500 in one year. If money can earn 8%, which option should he choose?

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Q 266Q 266

A large retail store offers a payment plan of no interest with 50% down and the balance in six months on a minimum purchase of $500. If money can earn 3.25%, how much of a discount should a buyer receive on a purchase of $2,000 if paid in full at the time of purchase?

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Q 267Q 267

Calculate the equivalent value of the scheduled payments if money can earn the rate of return specified in the last column. Assume that any payments due before today have been missed.

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Q 268Q 268

What single payment, 45 days from now, is economically equivalent to the combination of three payments of $1750 each: one due 75 days ago, the second due today, and the third due in 75 days from now? Money is worth 9.9% per annum.

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Q 269Q 269

Seth has a loan to repay. His terms are payments of $1,000 in six months and $1,000 in one year. He wants to settle the debt in three months. If the rate of interest is 6.5%, what single equivalent payment should Sam make?

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Q 270Q 270

Ninety days ago Stella signed an agreement with Manon requiring her to make three payments of $400 plus interest 90, 150, and 210 days, respectively, from the date of the agreement. Each payment was to include interest on the $400 principal at the rate of 13.5% from the date of the agreement. Stella now wants Ed to renegotiate the agreement and accept a single payment 30 days from now, instead of the three scheduled payments. What payment should Manon require in the new agreement if money is worth 8.5%?

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Q 271Q 271

Which of the following two payment streams has the greater economic value today if money can earn 3.5%: $500 now, $600 in three months, plus $900 in six months or $700 now, $300 in three months, plus $1,000 in nine months?

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Q 272Q 272

The original $3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

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Q 273Q 273

The original $3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

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Q 274Q 274

A karate club offers two payment plans for a one-year membership. The first is a cash price of $475. The second is a payment of $250 today, and $250 in six months. If the interest rate charged by the club is 8%, which option has the greater economic value?

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Q 275Q 275

A $10,000 loan made on January 1 at 7%, is to be repaid by payments of $3,500 on July 1, $3,500 on October 1, and a final payment on January 1 of the next year. What is the amount of the final payment required to pay off the loan in full?

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Q 276Q 276

Maurice borrowed $6,000 from Heidi on April 23 and agreed to make payments of $2,000 on June 1 and $2,000 on August 1, and to pay the balance on October 1. If simple interest at the rate of 10% was charged on the loan, what is the amount of the third payment?

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Q 277Q 277

A loan of $10,000 is to be repaid by three payments of $2,500 due in two, four, and six months, and a fourth payment due in eight months. What should be the size of the fourth payment if an interest rate of 11% is charged on the loan? Use today as the focal date.

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Q 278Q 278

A loan of $4,000 at 13% is to be repaid by three equal payments due four, six, and eight months after the date on which the money was advanced. Calculate the amount of each payment.

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Q 279Q 279

A $6,000 loan at 8% is to be repaid in three equal payments at three months, six months, and nine months. Determine the size of the equal payments.

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Q 280Q 280

A $7,500 loan will be paid off by four equal payments to be made 2, 5, 9, and 12 months after the date of the loan. What is the amount of each payment if the interest rate on the loan is 9.9%?

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Q 281Q 281

$3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

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Q 282Q 282

Kris has borrowed $2,000 and has agreed to repay the loan in two payments in nine and fifteen months. Each payment is $1,000 of principal and interest at the rate of 7%. Kris wants to settle the debt in six months. What single equivalent payment should she make if money is now worth 5%?

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Q 283Q 283

A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?

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Q 284Q 284

An $8,000 loan at an interest rate of 6.5% is to be repaid in three equal payments at six months, nine months, and one year later. Determine the size of the equal payments.

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