Exam 6: Simple Interest

What should be the amount of each payment if a $2500 loan at 8.75% is to be repaid by three equal payments due two months, four months, and seven months following the date of the loan?

If $20,000 was invested 82 days ago at an interest rate of 13.75%, what would be the value of the investment today?

Calculate the missing value:

What will be the maturity value in 15 months of a $4,500 loan at a simple interest rate of 11.9%?

Frankie's Furniture Mart has contracts from one customer who will pay $4,695 in 5 months and another customer who will pay $7,830 in 7 months. Frankie can sell the contracts today to Vinnie's finance company at a discount rate of 23.5%. How much money will Vinnie pay to Frankie today for the two contracts?

If $7,500 is to be paid now, what amount would be equivalent 8 months earlier given an interest rate of 3.88% per year?

Payments of $6,000 six months ago and $3,000 one month ago are to be replaced by $5,000 in 9 months and another payment today. If interest is 4.2% annually, determine the price of the payment today.

Rasheed wishes to postpone for 90 days the payment of $450 that he owes to Roxanne. If money now earns 4.75%, what amount can he reasonably expect to pay at the later date?

After 7 months how much interest would I have to pay on a loan of $300 if the rate of interest was 32%?

Calculate the combined equivalent value today of $500 due today and $300 due in three months. Assume that money can earn 95%.

John borrowed $1500 at 9.5% on October 10, 2004. On what date did the amount owed first exceed $1565?

Anthony borrowed $7,500 on September 15 and agreed to repay the loan by three equal payments on the following November 10, December 30, and February 28. Calculate the payment size if the interest rate on the loan was 8.75%.

Calculate the simple interest rate at which one can earn $2,200 per day interest on an investment of $8,500,000.

After 7 months at an interest rate of 13%, an investment matured today at a value of $80,000. How much of the $80,000 is interest?

How much must be placed in a two-month term deposit earning 4.8% in order to earn $275 interest?

If money if worth $650 now and $675 in 3 months, determine the rate of return that an investor would be indifferent between the two options.

A principal of $790 grew to $1,000 in 14 months. What annual rate of simple interest was earned?

How much must be placed in a 5-month term deposit earning 4.3%, simple interest, in order to earn $500 interest?

How do you determine the economic value on a particular date of a series of payments?

What amount of money paid today is equivalent to $560 paid five months from now if money can earn 1.75% per annum?