Choose the correct option.

Compute the following:

1. Amount Borrowed: $2500 Interest Rate: 4.2% Term: 4 months Interest = $__________ Maturity Value = $__________*

35 ; 2535

420; 2,920

3,500; 6,000

Other:

2. Amount Borrowed: $875 Interest Rate: 3.75% Term: 150 days Interest = $__________Maturity Value = $__________*

1367; 2,242

13.67; 888.67

13.67; 875

Other:

3. Amount Borrowed: $6800 Interest Rate: 7.15% Date of Loan: April 5 Term: 180 days Due Date of Loan = __________ Maturity Value = $__________*

Nov 2; 7043.10

Oct 2; 7043.10

Oct 5; 7043.10

Other:

4. Principal: $8400 Interest Rate: 7.25% Interest: $357 Time = _______ months*

7

0.586

5.86

Other:

5. Simple Interest Note Face Value = $5,000 Interest Rate = 3.5% Term = 9 months Interest = $__________ Amount of $ Borrower will receive = $__________ Simple Discount Note Face Value = $5,000 Discount Rate = 3.41% Term = 9 months Bank Discount (Interest) =$ ___________ Amount of $ Borrower will receive = $__________*

131.25; 5,000; 131.25; 5,000

131.25; 5,000; 127.88; 5,000

131.25; 5,000; 127.88; 4872.12

Other:

6. Face Value: $15,000 Discount Rate: 10.25% Time: 90 days Discount = $________ Proceeds = $___________*

384.38; 14,615.63

1537.5; 13,462.5

384.38; 13,462.5

Other:

7. Face Value: $9,500 Discount Rate: 12% Date Made: Oct. 12, 2012 Time: 100 days Maturity Date = ________ Proceeds = $___________*

Jan 20; 8,360

Jan 20; 9,500

Jan 20; 9183.33

Other:

8. What should be the face value of a simple discount note so that Brown Automotive Group would receive $185,000 to help pay for workshop improvements? The loan would be at a discount rate of 6.5% for a term of 300 days. Face Value of Loan = $__________*

195,594.71

185,000

172,975

Other:

9. A simple discount note with a face value of $25,750 at a discount rate of 3.65% for a term of 1 year 3 months has an APR of _____% (nearest hundredth).*

3.82

3.65

3.75

Other:

10. Mr. Thomas invested an amount of 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be 3508, what was the amount invested in Scheme B?*

6,400

6,500

7,200

Other: