Simple interest (future)

Problem no. 1 Find the simple interest on a principal of $ 900 for three years at 8%. Problem no. 2 Find the simple interest on a loan of $600 for 5 1/2 years at 7 1/4%. Problem no. 3 Find the number of days from May 13,2008 to October 3,2008. Problem no. 4 Find the exact interest on a loan of $600 for 90 days at 12%. Problem no 5 Find the interest on a loan borrowed from a bank of $600 for 90 days at 12%. Problem no 6 Find the interest and the amount due on a loan borrowed from a bank for $975 from April 17 to June 16 of the same year, if the interest rate is 6%. Problem no. 7 Find the interest on $840 borrowed by a factory from a bank for 36 days at 8%. Problem no. 8 A man has borrowed the following amounts from XYZ bank : $5000 on July 4, 2007 $10000 on August 13, 2007 $15000 on November 1, 2007 He found that his balance at the end of the year $30400, find the simple interest rate.

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Simple interest (present)

Problem no. 1 Find the present value at 6% simple interest of $1500 due in 9 months. Problem no. 2 What sum invested today at 5% will amount to $ 1000 in 8 months? Problem no. 3 A six month note for $2500 with interest at 6% dated March 20 was discounted on July 7 at 5%. Find the present value. Problem no. 4 At 4% simple interest, find the value today of the following obligations: $1000 due today, $2000 due in 6 months with interest at 5%, and $3000 due in 1 year with interest at 6%. Problem no. 5 A man owes $1000 due on December 8, 2006, $2000 due on January 1, 2007, $3000 due on March 26, 2007. He wishes to discharge his obligations by one payment due on May 1,2007. Find the payment if money is worth 6%. What is the answer if the due date is November 5. 2006? What is the answer if the due date is January 1. 2007? Problem no. 6 The following notes were discounted at XYZ bank on June 6, 2005 : $9000 due on July 15,2005 $5000 due on July 25, 2005 $5000 due on August 24, 2005 $2500 due on September 13,2005 (The location of the drawee is in Erbil) (The location of the drawee is in Sulaimania) (The location of the drawee is in Dhouk) (The location of the drawee is in Basra)

The simple interest rate is 6%, the collection commission is 0.1%, he takes one extra day, and he takes 0.05% as a collection expenses with minimum $2 for outside Erbil. Find what the drawer receives from the bank.

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Compound interest (future)

Problem no. 1 If $1000 is invested for 8 1/2 years at 7% compounded quarterly, find the sum at the end of the period. Problem no. 2 On March 20, 1990, $200 was invested in a fund paying 5% compounded semiannually. How much was in the fund on September 20, 2006 ? Problem no. 3 If $100 is invested for 6 years, 7 months, at 6% compounded monthly. Find the sum at the end of the period. Problem no. 4 If $ 300 is invested at 8% compounded quarterly from October 10, 1995, to January 10, 2003. Find the sum at the end of the period. Problem no.5 X borrows $600 agreeing to repay the principle with interest at 3% compounded semiannually What does he owe at the end of four years ? Problem no. 6 X borrows $2500 for 5 1/2 years at 4% compounded monthly. Find what does he pay at the end of the period ?

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Compound interest (Present)

Problem no. 1 I owe $1250 due after 3 years from today. What sum should my creditor be willing to accept today if he is able to invest money at 4% compound interest paid semiannually? Problem no. 2 In buying a house , Y pays $10000 cash and agrees to pay $7500 two years later. At 6% compound interest paid semiannually, find the cash value of the home. Problem no. 3 Find the present value of $1000 due after 5 years and 9 months if the interest rate is 4% compound interest paid quarterly.

Compound interest (Amortizing loans) Problem no. 1 A man has borrowed $5000 and agreed to repay the capital plus the interest in five equal annual payments, find the payment if the calculated compound interest rate is 6%. Problem no. 2 A man has borrowed $4000 at 5% compound interest and he agreed to pay the capital plus the interest in four equal annual payments . you are asked to prepare the amortization schedule.

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