The following exercises are a mixture of problems from the topics covered in Chapter 1.

One of
the objectives of doing these exercises is to be able to correctly identify which topics and tools
from this chapter are needed for each problem. All of the material covered in this chapter is fair
game, except for topics that were identified as optional.

1. Find the amount that you would need to deposit at a simple interest rate of 8.45% in order
to earn $200 in 3 months.

2. Express 57/8% as a decimal.

3. Mike loaned Jim $2325.17 for 80 days at 71⁄2% simple interest. Find the total amount Jim
will have to repay.

4. How long would it take for $1,835 to grow to $2,000 at 9.31% simple interest?

5. On January 7, 2005, Ming-zhu borrowed $186,547 at 11.35% simple interest. The note that
he signed came due on October 29, 2005. Find the note’s maturity value.

6. I borrowed $80 and paid $100 when the loan came due. How much interest did I pay?

7. If a note is signed on December 17, 2005, and matures on April 13, 2007, find its term.

8. Ingrid invested $12,500 at 4.35% simple interest for 300 days. If bankers’ rule is used to
calculate interest, how much interest did she earn?

9. Lockwell Lockers Company borrowed $182,600 at 65/16% simple interest on July 15,
2004. The note that the company signed matured on February 3, 2005. How much interest
did the company pay?

10. Johanna borrowed $350 for 100 days. She paid $375 in total to settle the loan when it came
due on September 25. Find (a) the amount of interest she paid and (b) the date the loan was
taken out.

11. Suppose that I loan someone $5,000 for 90 days. I will be repaid $5,125 when the loan
comes due. Find the simple interest rate.

12. Apercu Industries borrowed $92,350 for 200 dyas at 15% simple interest. Find the total
interest they will pay (a) using bankers’ rules and (b) using the exact method.

13.
 Promissory Note
Jane Doe, acknowledge a loan of $1,000
made to me today, April 22, 2006, by the
Sevent National Bank of Idaho Falls and
agree to repay this loan in 6 months with
simple interest calculated at rate of 12%.