PROBLEM 1
Find the interest paid on a loan of $1,200 for three years at a simple interest rate of 5% per year.
How much money will you pay after three years?
PROBLEM 2
Find the maturity value of a loan of $1,750 for 28 months at 9.8% simple interest per year.
PROBLEM 3
Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interest.
PROBLEM 4
A loan of $16,840 is borrowed at 9% simple interest and is repaid with $4,167.90 interest.
What is the duration of the loan? (compute the number of years as a decimal value and the duration in months)
PROBLEM 5
How much money is borrowed if the interest rate is 9.25% simple interest
and the loan is made for 3.5 years and has $904.88 interest?
PROBLEM 6
Find the ordinary and exact interest for a loan of $1000 at a 5% annual
interest rate. The loan was made on March 15 and is due May 15.
PROBLEM 7
Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for $7,200
at 8.25% annual simple interest from August 8 to November 8.
PROBLEM 8
What is the effective interest rate of a simple discount note for $8,000,
at an ordinary bank discount rate of 11%, for 120 days?
PROBLEM 9
1. Ross Land has a loan of $8,500 compounded quarterly for four years at 6%. What is the effective interest rate for the first year for the loan?
2. Find the effective interest rate for the first year for a loan for four years compounded semiannually at an annual rate of 2%
3. What is the effective interest rate for the first year for a loan of $5,000 at 10% compounded daily for three years?
4. Depending on the issuer, a typical credit card agreement quotes an interest rate of 18 percent APR. Monthly payments are required.
What is the actual interest rate you pay on such a credit card?
5. Find the effective interest rate for a loan of $3,500 at 10% interest compounded quarterly.
PROBLEM 10
Find the future value of a $15,000 money market investment at 2.8% annual interest compounded daily for three years.
PROBLEM 11
How much should be invested now to have $15,000 in six years if interest is 4% compounded quarterly?
PROBLEM 12
How much must be invested today at 2% annual interest compounded
semiannually to have the needed funds?
A loan of $8,000 for two acres of woodland is compounded quarterly at an annual
rate of 6% for five years. Find the compound amount and the compound interest.
Homework Assignments and Papers 