MAT112 - CH1&2

Mr. Smith deposited $40, 000 in a bank and earned simple interest at 7 % per annum for two years. Calculate the interest earned at the end of the period.

• $4000

• $2800

• $5600

• $3400

Principal + Simple Interest = ?

• Sum Amount

• Discount

• Future Value

• Total amount

How much simple interest is due on a loan of $120 for two years if the annual rate of interest is 5.5 %.

• $12

• $13.20

• $26.40

• $26

A man wishes to invest $1500. He can invest in Lintplus Investment club, which pays simple interest of 8% for 3 years. What is the amount in his account after 3 years?

• $18321

• $1860

• $1830

• $1524

Calculate the time T for $1000 to become $1300 at a rate of 5% simple interest

• 3 months

• 6 years

• 9 years

• 72 months

Find the principle amount that accounts to $2040 in 6 months at 4 % simple interest

• $200

• $2000

• $1300

• $2400

The amount of money borrowed or invested is called

• Proceeds

• Discount

• Sum Amount

• Principal

__ is the percent charged or earned

• Sum amount

• Value of discount

• Term of interest

• Rate of interest

A sum of money amounts to Rs. 815 in 3 year and Rs. 854 in 4 years. If simple interest is charged, what is the principal?

• Rs. 690

• Rs. 698

• Rs. 700

• Rs. 750

Rebecca wants to borrow $500 to buy her favorite video game player and a couple of games. She asks a friend to lend her this amount, offering to pay him back $548 in 9 months. What is the annual simple interest rate for this short term loan?

• 20%

• 12.8%

• 8.25%

• 16.5%