1. You take out a loan of PA at a simple interest rate of r for n-days (n > 0). Under exact interest, you have to pay back 8230 at the end of n-days. If ordinary interest is used instead, what would be the amount to be paid back at the end of n-days?

2. Suppose you deposit 10,000 on March 21 in a fund earning simple interest at r = 13%. How much will you have exactly 6 months later?

3. A merchant receives an invoice for 8000 with terms 2/10, n/50. What is the maximum interest rate that the merchant could borrow money at to take advantage of the discount?

4. A loan of 10,000 is taken out on November 7, 2006 at a simple interest rate of r = 9%. The loan will be paid back on May 11, 2007. If the bank uses ordinary interest (the Banker's Rule), how much interest is charged?

5. You deposit 10,000 in a 9-month investment that pays r = 8% for the first 6 months and r = 6% for the last 3 months. What is the maturity value of the investment at the end of 9 months?

6. How long does it take for 5000 to become 10,000 at a simple interest rate of r = 18% using ordinary interest (Banker's Rule)?

7. Interest of 300 is charged on a loan of 7300 bearing interest at r = 11%. What was the term of the loan? (Answer to the nearest day)

8. A person borrows 100,000 at a simple interest rate r = 24%. He is to repay the loan with 2 payments, one at the end of 2 months and the other at the end of 6 months. The first payment is the same as the 2nd payment. Determine the size of the payments, using the end of 6 months as the focal date.

9. A debt of 3000 is due in 4 months and another 5000 is due in 9 months. Instead, it is agreed that a payment of PX, made in 3 months, followed by a payment of 4000 in 10 months, will fully pay off the loan. Using 9 months as the focal date, what is X if the simple interest rate on the loan is r = 10%?

10. A loan is to be paid by installments of 800 1-month from now, 600 3-months from now, and 500 4-months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months and r = 6%?

11. A loan of 10,000 is taken out on October 29, 2010 and is to be paid off with 2 equal installments of X, to be paid on November 18 and December 29. What is the value of X if r = 7% and the Merchant's rule is used?

12. A loan of 4000 is paid off over 9-months at a simple interest rate of r = 8%. The borrower makes partial payments of 150 in 3-months and 2500 in 6-months. Using the declining balance method, what is the final balance due at the end of 9-months?

13. A debt of 60,000 is to be paid off with partial payments of 20,000 in 20-days (from today), 1500 in 60-days (from today) and a final payment of PX in 85-days (from today). If simple interest is charged at 16% and the declining balance method is used, what is X?