54 Chapter 1 Simple Interest
- Qisun borrowed $4,818 at a 5% simple interest rate on September 5, 2005. When did the total amount she owed reach
$5,000? - St. Stephen’s Church is considering borrowing $850,000 to fund a building expansion. At the annual fi nancial meeting,
the chair of the fi nance committee states that with the fi nancing the committee is considering, the church would not be
required to repay any principal for 5 years, but would be required to make an interest payment of $20,000 per quarter.
What is the simple interest rate for this loan? - For the loan represented by the time line shown below, determine:
a. The principal
b. The amount of interest
c. The term
d. The maturity date
e. The simple interest rate
$3,250.6711/1/05 225 days$3,495.17
- Find the interest for a 1-year loan of $400,000 at a 12^1 / 8 % simple interest rate.
- Dick made a loan to George. Who is the creditor and who is the debtor?