Quiz 2F

Oren, Leslie Joy A. Oren

MATH01G
AC102
9th December 2020
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Please follow the proper numbering…
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Note: All answers to nearest hundredth except No. 9
1. Michiko borrowed $25,000 .00 for 2 ¼ years at 8% per
year. Find the amount of simple interest
Ans: $ 4,500.00
I = PRT
I = ($25,000) (2 1/4) (8%/100)
I = ($25,000) (2.25) (0.08)
I = $ 4,500.00
2. Find the amount of simple interest if Yoko Ono invested
$17,600.00 for 7 months at 7.5%.
Ans: $ 770.00
I = PRT
I = ($17,600) (7/12) (7.5%/100)
I = ($17,600) (0.58333333) (0.075)
I = $ 770.00
3. Suzuki borrowed $37,000.00 at 8 ½ % simple interest for
120 days. Find the (to nearest cents)
a) Exact Interest
Ans: $ 1,033.97
 Ie = PRT
Ie = ($37,000) (8 ½) (120/365)
Ie = ($37,000) (0.085) (0.32876712)
Ie = $ 1,033.97
b) Ordinary Interest
Ans: $ 1,048.33
Io = PRT
Io = ($37,000) (8 ½) (120/360)
Io = ($37,000) (0.085) (0.33333333)
Io = $ 1,048.33
4. Find the maturity value of a loan of $43,200.00 made for
11 months at 7 ¼ % simple interest.
Ans: $ 46,071.00
M = P + PRT
M =43,200 + (43,200) (11/12) (7 ¼)
M=43,200 + (43,200) (0.91666667) (0.0725)
M =43,200 + 2,871
M =$ 46,071.00
5. Yamada borrowed a certain amount of money for 144 days
at 9 ½ % simple interest. If he was charged $1,900.00, what
was the
a) Original loan?
Ans: $ 50,000.00
P = I / RT
P = 1,900 / (9 ½) (144/360)
P = 1,900 / (0.095) (0.4)
P = 1,900/ 0.038
P = $ 50,000.00
b) Amount he paid at the end of 144 days?
Ans: $ 51,900.00
M=P+I
M = 50,000 + 1,900
M = $ 51,900.00
6. Yoshida deposited $60,000.00 in a savings bank and it
became $61,625.00 at the end of 150 days. Find the
percentage of the principal per year?
Ans: 0.065% or 6.5%
R = I / PT
R= $1,625 / ($60,000) (150 / 360)
R= $1,625 / 25,000
R= 0.065% or 6.5%

7. Masako placed $120,000.00 in Real Estate at 8%. How

many days will it take her to obtain an interest of
$4,000.00?
Ans: 153.3 days
T= I / PR
T= $4,000 / ($120,000) (8%)
T=$ 4,000 / ($120,000) (0.08)
T= 4,000 / 9,600
T= 0. 42 x 365 days / 1 year = 153.3 days
8. Kawazima owns a simple discount note that has a face
value of $28,000.00 and proceeds of $27,000.00. What is
the discount rate to the nearest hundredth if the note is for
125 days?
Ans: 0.10 /10 %
D = B / MT
B=M–P
B = $28,000.00 – $27,000.00
B = 1,000
D = $1,000 / ($28,000.00) (125/ 360)
D = 0.10 /10 %
9. Iman owns a simple discount note of $25,000.00 at 8% for
90 days. Find the true rate of interest to the nearest ones.
Ans: 8%
I = PRT
I = ($25,000) (0.08) (90 /360)
I = ($25,000) (0.08) (0.25)
I= $500
Re = B / ( Pr x T) x 100 %
Re = 500 / ($24,500) (90 /360)
Re = 500 / ($24,500) (0.25)
Re = (500 / 6,125) x 100%
Re = 0.08 x 100%
Re = 8%