Copyright © 2008, The McGraw-Hill Companies, Inc.
Exercises 1.4 43- Determine the maturity value for a $3,000 note signed on July 5, 2006, that comes due on April 17, 2007, assuming
a 9½% simple interest rate. - Find the simple interest rate for this promissory note:
IOU. Ted has loaned me $575 on January 18 and I hereby
promise to repay him $625 on August 30.
Signed,
Jenni- On what date was this promissory note signed?
Promissory Note
Sempronius Savings and Loan has made a loan of $12,500 to
Jack Miller as follows:
Maturity Value: $13,575
Maturity Date: September 28, 2007
Simple Interest Rate: 18%- Brad didn’t pay the property taxes for his house on time. On December 17, 2009, the town sent him a letter warning
him that he had to pay his taxes within the next 75 days. When is the deadline?
I. Additional Exercises- Suppose that you borrow $2,000 on January 1, 2009. The maturity date of the note that you sign is December 29,
2009, and the simple interest rate is 8% calculated using bankers’ rule.
a. Find the term of the note in days.
b. Use your answer from part a to fi nd the total amount of interest you will have to pay.
c. If the term of the loan had instead been 1 year, how much interest would you have had to pay?
d. Why is part c a trickier question than it might seem to be at fi rst? - Find the maturity date for a 200-day note signed on January 25, 2100.
- Determine whether or not each of the following years is a leap year:
a. 2013
b. 2018
c. 2044
d. 2058e. 2082
f. 2092
g. 2380