52 Chapter 1 Simple Interest
- Suppose that I loan someone $5,000 for 90 days. I will be repaid $5,125 when the loan comes due. Find the simple
interest rate. - Apercu Industries borrowed $92,350 for 200 days at 15% simple interest. Find the total interest they will pay (a) using
bankers’ rule and (b) using the exact method. - On March 1, Serge deposited $1,200 in a certifi cate of deposit paying 3.91% simple interest. The certifi cate’s maturity
date was November 21. Find the value of the certifi cate at maturity. - What date is 890 days from March 29, 2005?
- Calvin loaned Erin $8,145 on August 10, 2005. On April 17, 2006, Erin paid off the loan with $8,525.47. Find the
simple interest rate for this loan. - Axel put $939.39 in a bank account paying 5.35% simple interest. How long will it take before his account has grown
to $1,000? - Axel put $939.39 in a bank account paying 5.35% simple interest on June 7, 2004. When will his account be worth $1,000?
- Find the interest due on a loan of $89,000 for 7 months at 7.38% simple interest.
- Express each of the following percent interest rates as decimals:
a. 8%
b. 4^1 / 8 %
c. 15.3%
d. 125%
e. 0.75%
- On July 7, a real estate developer offered Danny $275,000 for a vacant building that he owns. The developer states
that this offer will expire in 35 days. On what date does this offer expire? - How much would you need to have in an investment account in order to generate monthly income of $850, assuming
a 7.5% simple interest rate? - Convert each of the following percent interest rates to decimals:
a. 4 ¾%
b. 10^7 ⁄ 8 %
c. 13^9 ⁄ 16 %
d. 5^11 ⁄ 32 %