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MAT112 - CH1&2

Total questions: 42

Worksheet time: 55mins

Name
Class
Date
1.

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.

a)

$4000

b)

$2800

c)

$5600

d)

$3400

2.

Principal + Simple Interest = ?

a)

Sum Amount

b)

Discount

c)

Future Value

d)

Total amount

3.

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

a)

$12

b)

$13.20

c)

$26.40

d)

$26

4.

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?

a)

$18321

b)

$1860

c)

$1830

d)

$1524

5.

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

a)

3 months

b)

6 years

c)

9 years

d)

72 months

6.

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

a)

$200

b)

$2000

c)

$1300

d)

$2400

7.

The amount of money borrowed or invested is called

a)

Proceeds

b)

Discount

c)

Sum Amount

d)

Principal

8.

__ is the percent charged or earned

a)

Sum amount

b)

Value of discount

c)

Term of interest

d)

Rate of interest

9.

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?

a)

Rs. 690

b)

Rs. 698

c)

Rs. 700

d)

Rs. 750

10.

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?

a)

20%

b)

12.8%

c)

8.25%

d)

16.5%

11.

What is the future value of a loan of $2800 to be repaid in 8 months at an annual simple interest of 9%?


a)

$3052

b)

$2831

c)

$2968

d)

$2034

12.

The simple interest formula is I=Prt.  The P represents the principle.  The principle is ___________________.

a)

the amount of money borrowed or deposited

b)


the amount taxed

c)

the percent interest for his year

d)

the amount the bank owes you for being a customer at their bank

13.

Starting money = $350.
Interest rate = 2.5%
TIme = 3 years.
How much interest?

a)

$7.50

b)

$87.5

c)

$26.25

d)

$262.50

14.

Julie borrowed $3,500 for 3 years at 7.5% simple interest rate. 
How much interest is that?

a)

$785

b)

$810

c)

$787.50

d)

$812.50

15.

If you are calculating the simple interest and you are given the time in months, how can you find the time in years?

a)

Add 12 to the months

b)

multiply 12 times the months

c)

divide the months by 12

d)

You cannot change it to months.

16.

The simple interest formula is I=Prt.  What does the t represent?

a)

Principle

b)

Time, in hours

c)

Interest

d)

Time, in years

17.

Emilio borrows $1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?


a)

$150

b)

$1350

c)

$192

d)

$1392

18.

Leroy borrowed $1500 at an annual simple interest rate of 12%.  He paid $270 in interest.  For what time period did Leroy borrow the money?

a)

8 years

b)

18 months

c)

0.015 years

d)

18 years

19.

What is 7.25% converted to a decimal?

a)

.725

b)

0.0725

c)

0.725

d)

7.25

20.

Principal = $500
Interest earned in 4 years = $60.
Find the interest rate.

a)

1%

b)

3%

c)

2%

d)

4%

21.

Jenna borrowed $5,000 for 3 years and had to pay $1,350 simple interest at the end of that time. What rate of interest did she pay?

a)

6%

b)

8%

c)

7%

d)

9%

22.

Maria borrowed $3,000 at a simple interest rate of 4% per year.  How much interest did she have to repay after 4 years?

a)

$480

b)

$4,800

c)

$3,480

d)

$7,800

23.

Ann puts $300 in a bank account earning 4% interest.  How much will she earn in interest in 1 year?

a)

4

b)

12

c)

8

d)

16

24.

9 months is how many years?

a)

.5

b)

9/12

c)

.25

d)

.75

25.

If you pay your loan weekly how many times a year must you make your payment?

a)

26

b)

4

c)

1

d)

52

26.

A person signs a document that contains the name of the borrower, the name of the lender, the amount borrowed, the interest rate, the date the note was signed, and the first payment due date. This document is known as a:

a)

IOU

b)

promissory note

c)

loan contract

d)

none of the answers given are correct

27.

Which of the following is generally NOT contained in a promissory note?

a)

date the note was signed

b)

interest rate

c)

amount borrowed

d)

discount term by the lender

28.

Promissory notes are negotiable document, thus they can be divided in two types. Choose what type is it ?

a)

Interest bearing note & Non-interest bearing note

b)

Simple interest & Compound interest

c)

Cash & Cheque

29.

"The date of on which the note is made"

a)

Payee

b)

Date of the note

c)

Maker

d)

Face value

30.

"The total amount which payee will receive on the maturity date"

a)

Maker

b)

Date of the note

c)

Term of the note

d)

Maturity value

31.

If the lender sell the promissory note and get the proceeds, what is the interest that the lender get?

a)

I = Proceed - P

b)

I = Prt

c)

S = P + I

32.

S = P, the stated formula is for ?

a)

Non-interest bearing

b)

simple interest

c)

interest bearing

d)

Non-interest compound

33.

D = Sdt, this formula is to find bank discount. State the full name of every alphabet.

a)

D= Bank discount, S=Maturity value,

d=Discount rate, t=Discount term (Time)

b)

D= Discount term, S=Discount rate,

d=Discount value, t= Bank time

c)

D=Discount time, S= Second discount,

d=Buying discount

34.

Proceeds formula is

a)

Proceeds = S(1-dt)

b)

Proceeds = I(1-dt)

c)

Proceeds = D(1-rt)

35.

Zafri decides to borrow RM25,000 from a bank that charges 4.7% discount rate for 3 years 4 months to set up his business. Find t (in years).

a)

t = 3.4

b)

t = 3

c)

t=103t=\frac{10}{3}


d)

t=1

36.

Zafri decides to borrow RM25,000 from a bank that charges 4.7% discount rate for 3 years 4 months to set up his business. Find S (maturity value).

a)

RM 25,000

b)

RM 21,005

c)

RM 21,475

d)

RM 21,083.33

37.

Fuad received a 120 days promissory note with a face value of RM6000 at an interest rate of 12%. He then sold the note to a bank after hold for 100 days. Find discount period.

a)

120 days

b)

220 days

c)

100 days

d)

20 days

38.

A 90-day promissory notes dated 15 March 2022 with a maturity value of RM 1545 was charged a simple interest rate of 12% per annum. Find the maturity date of the note.

a)

15 June 2022

b)

13 June 2022

c)

12 June 2022

d)

14 June 2022

39.

Happy received a 60-days promissory note. If the maturity date of the note was 19th June 2020. Find the date of the promissory note.

a)

19 April 2020

b)

18 August 2020

c)

20 April 2020

d)

19 August 2020

40.

Kamal received a 60-days promissory note with a simple interest rate of 8% and a maturity value of RM 4560. The maturity date of the note was 15th September 2020. Find the date of the note.

a)

16 July 2020

b)

18 July 2020

c)

15 Nov 2020

d)

17 July 2020

41.

A 60-day promissory note dated 27 Nov 2020 had a face value of RM 2000. The simple interest rate charged was 6.6% per annum. Determine the maturity date of the note.

a)

26 Jan 2020

b)

25 Jan 2021

c)

24 Jan 2021

d)

26 Jan 2021

42.

A 60-day promissory note dated 27 Nov 2020 had a face value of RM 2000. The simple interest rate charged was 6.6% per annum. Determine the maturity value of the note.

a)

RM 2000

b)

RM2021.64

c)

RM 2022

d)

RM2021.70