1. find the interest paid on a loan of $2400 for two years at a simple interest rate of 12% per year.
The interest on a loan is $
2. Find the maturity value of a loan of $2400.00 after three yearz. The loan carries a simple interest rate of 7.5% per year.
The maturity value of a loan is $ (round to nearest cent)
3. Convert to years, expressed in decimal form to the nearezt hundredth. Ten months.
Ten months = (round to nearest decimal)
4. A man needed money to buy lawn equipment. He borrowed $700.00 for five months and paid $53.96 in interezt. What was the rate of interest?
The rate of interest per year was (round to nearest decimal)
5. Find the exact interezt on a loan of $32,400 at 7% annually for 35 days.
$(round to nearest cent)
6. A loan made on March 13 is due September 12 of the following year. Find the exact time for the loan in a non-leap year and a leap year.
The exact time in a non-leap year is ___ days
the exact time in a leap year is ____ days
7. A loan is made on March 22 for 181 days. Find the due date.
8. A loan for $2000 with a simple annual interest rate of 15% was made on June 14 and was due on August 14. Find the exact interezt.
The exact interest is $____
9. Find the adjusted balance due at maturity for a 90 day note of $15,000 at 13.1% ordinary interest if a partial payment of $6,000 is made on the 60th day of the loan. The adjusted balance due at maturity is $___________________
10. Bob Johnson borrowed $8,000 on a 150-day note that required ordinary interest at 13.27%. Bob paid $4,250 on the note on the 75th day. How much interest did he save by making the partial payment. The interest save is $_________________
11. Bob makes a simple discount note with a face value of $2,700 a term of 180 days, and a 9% discount rate. Find the discount using the banker’s rule. The discount is $_________________.
12. Bob has a simple discount note of $6,300 at an ordinary bank discount rate of 8.53% for 40 days. What is the effective interest rate? Round to the nearest tenth of a percent (use the bankers rule). The effective interest rate is _____________________%.
13. Bob holds a note of $5,000 that has an interest rate of 11% annually. The note was made on March 18 and is due November 11. He sells the note to a bank on June 12 at a discount rate of 10% annually. Find the proceeds on the 3rd party discount note (use the banker’s rule). The proceeds are______________________.
14. A loan of $5,000 at 6% compounded semiannually for four years. Find the future value and compound interest. Use. The $1.00 future value table of the future value and compound interest formula. The future value of the loan is $____________. The compound interest is $________________
15. A loan of $2000 and 24% is compounded monthly for one year. Find the future value and compound interest. Use a $1.00 future value table or the future value and compound interest formula.
The future value of the loan is $
the compound interest is $
16. Bob Johnson borrowed $6,200 at 6 ½ % for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan?
17. A bank loaned bob Johnson $3000 for six years compounded annually at 7%. How much interest was John required to pay on the loan? Use the $1.00 future value table or the future value and compound interest formula.
John was required to pay $____________ of interest
18. Find the future value of an investment of $9,500 if it is invested for three years and compounded semiannually at an annual rate of 1%. Use the $1.00 future value table or the future value and compound interest formula.
The future value of the investment is $_____________
19. Find the effective interest rate for a loan for four years compounded semiannually at an annual rate of 3%.
The effective interest rate is __________ %
20. Find the compound interest on a $4000 investment at .5% compounded daily for 20 days. The compound of interest of $100 compounded daily is 0.023290.
21. Find the amount that should be set aside today to yield the desired future amount. Future amount needed, $6000, interest rate, 4%, compounding., Semiannually, investment time, two years. On the chart the present value of $1 at 12% is 0.89286.
The present value is $
22. Compute the amount of money to be set aside today to ensure a future value of $4300 in one year if the interest rate is 4.5% annually, compounded annually.
The amount of money to be set aside is $
23. Bob Johsnon has just inherited $27,000. How much of this money should be set aside today to have $24,000 to pay cash for a Ventura Van, which he plans to purchase in one year? He can invest at 1.2% annually, compounded annually.
The amount of money to be set aside is $
24. Dewey Sykes plans to open a business and four years when he retires. How much must he invest today to have $8000 when he retires if the bank pays 10% annually, compounded semiannually?
Bob Johnson must invest $
