Loan Interest and Maturity Value

1. Using the exact interest method (365 days), find the amount of interest on the following loan
Principal Rate (%) Time (days) Exact Interest
$1,700 12½ % 33
(Points : 2)

2. What is the maturity value of the following loan? Use MV = P(1 + RT) to find the maturity.
Principal Rate (%) Time Maturity Value
$120,740 11¾ % 7 months
(Points : 3)

3. Determine the number of days of the following loan.
Loan Date Due Date Number of Days
October 20 December 18
(Points : 2)

4. Determine the maturity date of the following loan.
Loan Date Time Loan (days) Maturity Date
May 15 111
(Points : 3)

5. Compute the principal for the following loan. (Round to the nearest cent, 2 places after decimal.)
Principal Rate (%) Time Interest
10½ % 10 months $5,900
(Points : 2)

6. Compute the rate for the following loan. Round your answer to the nearest tenth of a percent.
Principal Rate (%) Time Interest
$50,000 9 months $4,500
(Points : 2)

7. On May 23, Samantha Best borrowed $40,000 from the Tri City Credit Union at 13% for 160 days. The credit union uses the exact interest method. What was the amount of interest on the loan? (round to the nearest hundredth) (Points : 2)

8. Using the scenario from the previous question, calculate the maturity value of the loan. (round to the nearest hundredth) (Points : 3)

9. What is the maturity date of Samantha Best's loan? (Points : 2)

10. Katie Chalmers borrowed money from her credit union at 13.2% simple interest to buy furniture. If the loan was repaid in 2½ years and the amount of interest was $1,320, how much did Katie borrow? (Points : 3)

11. Alicia Eastman deposited $2,000 in a savings account at the Biltmore Bank paying 6% ordinary interest. How many years will it take for her investment to amount to $2,600? (Points : 3)

12. Using the scenario from the previous question, determine the maturity date of the loan. (Points : 2)

13. Varsity Press, a publisher of college textbooks, received a $70,000 promissory note at 12% ordinary interest for 60 days from one of its customers, Reader's Choice Bookstores. After 20 days, Varsity Press discounted the note at the Grove Isle Bank at a discount rate of 14.5%. The note was made on March 21. What was the maturity date of the note? (Points : 2)

14. Using the scenario from the previous question, calculate the maturity value of the note. (Points : 3)

15. What was the discount date of the note from the previous question? (Points : 3)

16. What proceeds did Varsity Press receive after discounting the note? (Points : 3)