# Contemporary Mathematics

Mathematics

## Quiz 10 : Simple Interest and Promissory Notes Study Flashcards  Looking for Developmental Mathematics Homework Help?

## Quiz 10 :Simple Interest and Promissory Notes

Question Type  What is the maturity value of the following loans? Use MV = P (1 + RT ) to find the maturity values.  Free
Essay

To find the maturity value of a loan of \$120,740 at % interest for 7 months, use the maturity value formula where is the maturity value, is the principal R is the rate of interest and T is the time factor.
Here the rate % is converted to a decimal 0.1175 and the time factor, expressed as a fraction of a year, .
Now substituting 120,740 for P , 0.1175 for R and for T in the simple interest formula gives Hence the maturity value of the loan is .

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Choose question tag  Interest calculated solely on the principal amount borrowed is known as __________ interest, while interest calculated at regular intervals on the principal and previously earned interest is known as __________ interest.
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Interest is the price or rental fee charged by a lender to a business or an individual for the use of money. Interest calculated solely on the principal amount borrowed is known as interest, while interest calculated at regular intervals on the principal and the previously earned interest is known as interest.
Simple interest loans are usually made for short periods of time, such as a few days, weeks or months, whereas compound interest loans are generally for time periods of a year or longer.

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Choose question tag  Maturity value is the total payback of principal and interest of a loan. List the two formulas for calculating maturity value.
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When the time period of a loan is over, the loan is said to be mature. At that time, the borrower repays the original principal plus the interest. Maturity value is the total payback of principal and interest of a loan. Once the interest has been calculated, the maturity value can be found by using the formula: Maturity value can also be calculated directly without first calculating the interest by using the following formula: Tags
Choose question tag  The interest calculation method that uses 360 days as the time factor denominator is known as __________ interest.
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Choose question tag  Using the ordinary interest method (360 days), find the amount of interest on the following loans.  Essay
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Choose question tag  The interest calculation method that uses 365 days (366 in leap year) as the time factor denominator is known as __________ interest.
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Choose question tag  The first day of a loan is known as the __________ date; the last day of a loan is known as the __________ date.
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Choose question tag  What is the maturity value of the following loans? Use MV = P ( 1 + RT ) to find the maturity values.  Essay
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Choose question tag  The U.S. rule states that when a partial payment is made on a loan, the payment is first used to pay offthe accumulated __________ to date and the balance is used to reduce the __________.
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Choose question tag  Using the exact interest method (365 days), find the amount of interest on the following loans.  Essay
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Choose question tag  Write the formula for calculating simple interest.
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Choose question tag  List the three factors that determine the amount of interest charged on a loan.
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Choose question tag  Using the ordinary interest method (360 days), find the amount of interest on the following loans.  Essay
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Choose question tag  From the following information, determine the number of days of each loan.  Essay
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Choose question tag  The price or rental fee charged by a lender to a borrower for the use of money is known as __________.
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Choose question tag  From the following information, determine the maturity date of each loan.  Essay
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Choose question tag  Using the exact interest method (365 days), find the amount of interest on the following loans.  Essay
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Choose question tag  From the following information, determine the number of days of each loan.  Essay
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Choose question tag  When solving the simple interest formula for principal, rate, or time, the __________ is always the numerator.
Essay  From the following information, determine the maturity date of each loan.   