Stands for dollar amount of interest

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Reference no: EM131994768

1. In the simple interest formula I = PRT, I stands for “dollar amount of interest.”

a. True

b. False

2. Suppose you borrow $3,000 at 7.25% interest for 14 months. What is the maturity value?

a. $253.75

b. $3,217.50

c. $3.253.75

d. $217.50

3. JoAnn gets a 6.5% $1,300 loan on October 25, 2007. If JoAnn repays the money on April 18, 2008 (a leap year), how much interest does she owe? Assume the lender uses a 365-day year.

a. $40.51

b. $40.28

c. $40.75

d. $40.98

4. You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment of $1,400 on day 36 (36 days after getting the loan). Calculate your balance after the $1,400 payment is applied.

a. $1,361.53

b. $4,600.00

c. $4,696.16

d. $4,638.47

Reference no: EM131994768

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