WorksheetsL8: Simple interest application
Total questions: 5
Worksheet time: 14mins
A five-month promissory note is issued on June 30. The legal due date is:
December 1
November 30
December 3
November 3
A non-interest bearing note has a face value of $3000. The note is due 96 days from today. Money is currently worth 8% per annum. Find the purchase price of the note.
$2938
$3063
$2778
$2923
A 182-day T-bill has a maturity value of $100,000. The purchase price is $98,140 when the yield rate is 3.8% p.a. The amount of interest earned is:
$1865
$1860
$3729
$1900
Blended payments on a $4000 loan were $425 per month. Interest was charged at 6.2% per annum calculated on the unpaid balance. How much of the first payment goes to the loan principle?
$20.67
$404.33
$425.00
$248.00
A loan is paid off with a series of partial payments using the declining balance approach. Which of the following statements is true?
The payment is applied to the outstanding principal first.
The payment is applied to the accumulated interest first.
The payment is applied to principal and interest in equal amounts
The interest is always calculated on the original amount of the loan.
