Simple interest
1. If you take out a 45day loan for $8500 at a rate of 8.125% per year, where simple
interest is used, how much interest will you owe at repayment? (Use a banker's year.)
(a) $39.20
(b) $76.12
(c) $86.33
(d) $89.20
(e) $84.65
2. If you take out a 45day loan for $8000 at a rate of 8.25% per year, where simple
interest is used, how much interest will you owe at repayment? (Use a banker's year.)
(a) $39.20
(b) $76.12
(c) $82.50
(d) $89.20
(e) $84.65
3. If you take out a 90day loan for $15,200 at a rate of 9
3
4
% per year, where simple
interest is used, how much interest will you owe when the loan comes due?
(a) $390.63
(b) $385.27
(c) $370.50
(d) $385.21
(e) $383.01
4. Mortgage payments are calculated using simple interest each month. If the mortgage
balance at the beginning of the month is $176,500 and the interest rate is 7% per year,
what is the interest owed at the end of the month?
(a) $1221.25
(b) $1119.78
(c) $1765.00
(d) $1235.50
(e) $1029.58
5. If you take out a 150day loan for $12,500 at a rate of 7
1
2
% per year, where simple
interest is used, how much interest will you owe when the loan comes due?
(a) $385.27
(b) $377.60
(c) $390.63
(d) $385.21
(e) $383.01
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interest is used, how much interest will you owe when you repay the loan?
(a) $151.21
(b) $306.60
(c) $140.63
(d) $128.00
(e) $187.50
7. If you take out a loan for $6500 at a rate of 6
1
2
% per year, where simple interest is
used, how much interest will you owe at the end of 150 days?
(a) $144.55
(b) $154.63
(c) $173.63
(d) $152.63
(e) $176.04
8. If you take out a 210day loan for $14,200 at a rate of 7.5% per year, where simple
interest is used, how much interest will you owe when the loan comes due?
(a) $621.25
(b) $532.50
(c) $651.16
(d) $615.21
(e) $591.67
9. If you take out a 45day loan for $8500 at a rate of 8.125% per year, where simple
interest is used, how much interest will you owe at repayment? (Use a banker's year.)
(a) $39.20
(b) $76.12
(c) $86.33
(d) $89.20
(e) $84.65
10. If you take out a 180day loan for $14,200 at a rate of 7.5% per year, where simple
interest is used, how much interest will you owe when the loan comes due?
(a) $551.16
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 Spring '08
 Rudivalis
 Math, Finance, Basic Math

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