18 Chapter 1 Simple Interest
- How much interest would you have to pay for a 30-month loan of $1,735.53 if the simple interest rate were 7.11%?
- Zeropoint Energy Systems has just borrowed $800,000 from a private investor for 19 months, at a simple interest rate
of 9.53%. Find the total amount Zeropoint will have to repay.
B. Terms in Days: Exact Method
Use the simplifi ed exact method (365 days/year) for the exercises in this section.
- Toby loaned Jae $500 at a simple interest rate of 7.3%. Find the total interest Toby will earn if the loan’s term is 150 days.
- Bushnell Savings and Loan borrowed $2,500,000 from Fullam Federal Bank for 10 days at a simple interest rate of
2.17%. Find the total interest the savings and loan will pay. - If I deposit $1,875 in a CD that pays 3.13% simple interest, what will the value of the account be after 100 days?
- Peg borrowed $3,715.19 at 15^7 ⁄ 8 % simple interest for 438 days. How much will she need in total to pay the loan
back? - How much interest will Hanif earn if he makes a loan of $4,280 for 210 days at 10% simple interest?
C. Terms in Days: Bankers’ Rule
Use bankers’ rule (360 days/year) for the exercises in this section.
- The Hsang-wha Trading Company borrowed $720,000 for 30 days at 14.4% simple interest. Find the total amount of
interest the company paid. - Find the total interest owed for a 120-day loan of $815 if the simple interest rate is 8^13 ⁄^16 %.
- Alan agreed to loan Shane $215.50 for 500 days. Assuming that the simple interest rate is 20%, how much will Alan
earn from this loan? - One credit union agrees to make a short-term loan to another in the amount of $10,560,350. The loan will be paid
back, together with 3.75% simple interest, in 14 days. Find the total amount of the repayment. - Summer deposited $2,251.03 in a 264-day bank certifi cate of deposit paying 0.87% simple interest. What will her
account value be at the end of the term?