5 Questions
What is the exact simple interest on a 214-day loan of $15,000 at 7%?
$I = P \cdot r \cdot t \Rightarrow I = 15000 \cdot 0.07 \cdot 365 = 615.52$
What is the ordinary simple interest on a 90-day loan of $8000 at 8.5%?
Exact interest: $I = P \cdot r \cdot t \Rightarrow I = 8000 \cdot 0.085 \cdot 365 = 167.67$; Ordinary interest: $I = P \cdot r \cdot t \Rightarrow I = 8000 \cdot 0.085 \cdot 360 = 170$
What is the total amount after one year for a 214-day loan of $15,000 at 7% interest?
The total amount, S, can be found using the formula $S = P \left(1 + rt\right) = 15000 \left(1 + 0.07 \cdot \frac{214}{365}\right) = 15615.52$
What is the total number of days from April 7 to November 7?
Total days = 214 (from April 7) + 31 (May) + 30 (June) + 31 (July) + 31 (August) + 30 (September) + 31 (October) + 7 (November) = 214 + 30 + 31 + 31 + 31 + 30 + 31 + 7 = 205
What was the annual interest rate for a loan of $100 to be repaid with $120 at the end of one month?
The annual interest rate, $r$, can be found using the formula $I = P \cdot r \cdot t$, where $I = 120 - 100 = 20$ and $t = 1$. So, $r = \frac{I}{P \cdot t} = \frac{20}{100 \cdot 1} = 0.2$ or 20%
Test your knowledge of simple interest calculation, including determining the interest, future value, and amount. Understand the key concepts of principal, interest rate, and time in years.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
