1- At what rate of simple interest will

a) $1000 accumulate to $1420 in 2.5 years,

b) money double itself in 7 years, and
c) $500 accumulate $10 interest in 2 months?
2-Determine the maturity value of
a) a $2500 loan for 4 months at 12% simple
interest,
b) a $1200 loan for 130 days at 8.5% ordinary
simple interest, and
c) a $13 000 loan for 64 days at 7% exact simple
interest.
3-using the bankers rule, find the amount of simple
interest on $200 from September 30, 1995, to july 7,
1997, at 18%.

4- ali borrows $800 at 16%. He agrees to

pay off the debt with payments of size $X, $2X,
and $4X in 3 months, 6 months, and 9 months
respectively. Determine X using all four
transaction dates as possible focal dates.
5-alex borrowed $1000, repayable in one
year, with interest at 9%. He pays $200 in
3 months and $400 in 7 months. Determine
the balance in one year using the Merchants Rule.

6. A 90-day note promises to pay Ms. Chiu $2000

plus simple interest at 13%. After 51 days it is
sold to a bank that discounts notes at a 12%
simple interest rate.
a) How much money does Ms. Chiu receive?
b) What rate of interest does Ms. Chiu realize
on her investment?