Find the interest paid on a loan

1. find the interest paid on a loan of \$2800 for two years at a simple interest rate of 11% per year.

The interest on a loan is \$

2. Find the maturity value of a loan of \$2400.00 after three years. The loan carries a simple interest rate of 7.7% per year.

The maturity value of a loan is \$ (round to nearest cent)

3. Convert two years, expressed in decimal form to the nearest hundredth. Nine months.

Nine months = (round to nearest decimal)

4. A man needed money to buy lawn equipment. He borrowed \$800.00 for five months and paid \$53.95 in interest. What was the rate of interest?

The rate of interest per year was (round to nearest decimal)

5. Find the exact interest on a loan of \$32,600 at 7% annually for 20 days.

\$(round to nearest cent)

6. A loan made on March 13 is due September 10 of the following year. Find the exact time for the loan in a non-leap year and a leap year.

The exact time in a non-leap year is 546 days
the exact time in a leap year is 547 days

7. A loan is made on March 20 for 181 days. Find the due date.

September 17

8. A loan for \$2000 with a simple annual interest rate of 15% was made on June 18 and was due on August 18. Find the exact interest.

The exact interest is \$50.14

9. Find the adjusted balance due at maturity for a 90 day note of \$18,000 at 13.8% ordinary interest is a partial payment of \$4000 is made on the 60th day of the loan.

The adjusted balance due at maturity is \$14,579.76

10. Raul Fletes borrowed \$7000 on a 210 day note that required ordinary interest at 13.41%. Raul paid \$3500 on the note on the 140th day. How much interest did he save by making the partial payment?

The interest saved is \$(round to nearest cent)

11. A man makes a simple discount note with a face value of \$2700, a term of 140 days, and a 18% discount rate. Find the discount.(use banker’s rule)

The discount is \$

12. A man has a simple discount note for \$6100, at an ordinary bank discount rate of 8.53%, for 50 days. What is the effective interest rate? Round to the nearest 10th of a percent. Use banker’s rule.

The effective interest rate is %

13. A man holds a note of \$5000 that has an interest rate of 14% annually. The note was made on March 19 and is due November 12. He sells the note to a bank on June 12 at a discount rate of 13% annually. Find the proceeds on the third-party discount note. (Use the bankers rule)

The proceeds are \$4107.34

14. A loan of \$4000 at 4% is compounded semiannually for four years. Find the future value and compound interest. Use the \$1.00 future value table or the future value and compound interest formula.

The future value of the loan is \$4686.64
the compound interest is \$686.64

15. A loan of \$1000 and 30% is compounded monthly for one year. Find the future value and compound interest. Use a \$1.00 future value table or the future value and compound interest formula.

The future value of the loan is \$1344.89
the compound interest is \$344.89

16. Tom Bond borrowed \$6200 at 6 ½% for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan?

The compound amount is \$7489.29
the compound interest is \$1289.29

17. A bank loaned John Smith \$4000 for seven years compounded annually at 8%. How much interest was John required to pay on the loan? Use the \$1.00 future value table or the future value and compound interest formula.

John was required to pay \$2855.30 of interest

18. Find the future value of an investment of \$12,000 if it is invested for four years and compounded semiannually at an annual rate of 2%. Use the \$1.00 future value table or the future value and compound interest formula.

The future value of the investment is \$12,994.28

19. Find the effective interest rate for a loan for four years compounded semiannually at an annual rate of 2%.

The effective interest rate is 2.01%

20. Find the compound interest on a \$2000 investment at .5% compounded daily for 17 days. The compound of interest of \$100 compounded daily is 0.023290.

The interest is \$

21. Find the amount that should be set aside today to yield the desired future amount. Future amount needed, \$5000, interest rate, 8%, compounding., Semiannually, investment time, two years. On the chart the present value of \$1 at 12% is 0.79719.

The present value is \$

22. Compute the amount of money to be set aside today to ensure a future value of \$2700 in one year if the interest rate is 1.5% annually, compounded annually.

The amount of money to be set aside is \$

23. Ronnie Cox has just inherited \$27,000. How much of this money should be set aside today to have \$22,000 to pay cash for a Ventura Van, which he plans to purchase in one year? He can invest at 1.7% annually, compounded annually.

The amount of money to be set aside is \$

24. Dewey Sykes plans to open a business and eight years when he retires. How much must he invest today to have \$5000 when he retires if the bank pays 3% annually, compounded semiannually?
Present value of

9. Find the adjusted balance due at maturity for a 90 day note of \$15,000 at 13.1% ordinary interest is a partial payment of \$4000 is made on the 60th day of the loan. 30th is Feb 1st 60th day is Mar. 1st Apr. 1st is 90th

The adjusted balance due at maturity is

13. A man holds a note of \$5000 that has an interest rate of 14% annually. The note was made on March 19 and is due November 12. He sells the note to a bank on June 12 at a discount rate of 13% annually. Find the proceeds on the third-party discount note. (Use the bankers rule)

The proceeds are \$

14. A loan of \$6000 at 7% is compounded semiannually for two years. Find the future value and compound interest. Use the \$1.00 future value table or the future value and compound interest formula. Future Value or Compound Amount of \$1 at 7% is 1.1449

16. Tom Bond borrowed \$6200 at 6 ½% for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan?

The compound amount is \$

the compound interest is \$

17. A bank loaned John Smith \$4000 for four years compounded annually at 7%. How much interest was John required to pay on the loan? Use the \$1.00 future value table or the future value and compound interest formula. Future value or compound amount of \$1 at 7% is 1.31080

John was required to pay \$ of interest

18. Find the future value of an investment of \$10,000 if it is invested for four years and compounded semiannually at an annual rate of 4%. Use the \$1.00 future value table or the future value and compound interest formula. Future value or compound amount of \$1 at 4% is 1.16986

The future value of the investment is \$

19. Find the effective interest rate for a loan for three years compounded semiannually at an annual rate of 2%. Future value or compound amount of \$1 at 2% is 1.06121.

The effective interest rate is %