EXAM 2 I %3d P_R_T PRACTICE PROBLEMS (NO ANSWER)

# EXAM 2 I %3d P_R_T PRACTICE PROBLEMS (NO ANSWER) - HACE...

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HACE 3200 I=P*R*T Practice problems Calculation of interest under the simple interest method is as follows: Interest = Principle * Rate * Time *remember to keep “time” in relation to 1 year. For example: 12 months = T = 1; 24 months = T = 2; 6 months = T = .5 1. Using the simple interest method calculate the interest (finance charge) on the following loan: Principle = \$87,000, Rate = 15.5%, Time = 9 months 2. Using the simple interest method calculate the interest (finance charge) on the following loan: Principle = \$43,000, Rate = 12.5%, Time = 5 months 3. Using the simple interest method calculate the interest (finance charge) on the following loan: Principle = \$172,000, Rate = 11.25%, Time = 24 months 4. Using the discount method calculate the interest (finance charge) on the following loan: Principle = \$75,000, Rate = 18.3%, Time = 18 months

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5. Using the discount method a) calculate the interest (finance charge) on the following loan, and b) state what the balance will be on the borrower’s check, and c) the amount
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## This note was uploaded on 06/06/2011 for the course HACE 3200 taught by Professor B during the Spring '09 term at UGA.

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EXAM 2 I %3d P_R_T PRACTICE PROBLEMS (NO ANSWER) - HACE...

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