Question:

2) Veronica loaned $7,000 to Rachel at a simple interest rate of 4.66% p.a. for 2 years and 9 months. Calculate the amount of interest charged at the end of the term.

3) How long will it take for an investment to double at simple interest rate of 2.60% p.a.?

[answer in years and months]

4) Taylor received a loan at 3% p.a. simple interest for 10 months. If she was charged an interest of $147.50 at the end of the period, what was the principal amount of the loan?

5) Paige was charged interest of $105 for a loan amount of $2,100 that she borrowed for 160 days. What annual rate of simple interest was charged?

6)What annual rate of simple interest was charged on a loan of $6,700.00 that was issued on October 28, 2014, if it accumulated $449.67 in interest by March 4, 2015?

7) Brian borrowed $8,000 at 6.75% p.a. simple interest. How long did she take to repay the loan if she was charged interest of $410. [answer in years and months]

8) Kimberly's investment in her savings account matured to $5,462.07 at the end of 265 days. If the account was earning simple interest at a rate of 2.90% p.a., answer the following.

a. What was Kimberly's initial investment?

b. How much interest did Kimberly earn?

9) Whitney invested her savings of $575 in a savings account that was earning simple interest at 3.51% p.a. She also invested $2,925 in her friend's business at 0.40% p.m.

a. What is the interest rate per month that is equivalent to 3.51% p.a.?

b. What was the total interest earned from both investments at the end of 13 months?

10) Rebecca earned $2,998 as interest by lending a certain amount at a simple interest rate of 1.00% p.m. for 8 months.

a. Calculate the principal amount of the loan.

b. Calculate the maturity value of the loan.

11) Rebecca earned $2,992 as interest by lending a certain amount at 1.00% p.m. for 9 months.

a. Calculate the loan principal.

b. Calculate the loan's maturity value.

12) After 7 months of investing $520 in a high-growth fund, Gabrielle's investment had a maturity amount of $554 in the fund. She also had the option to invest the same amount in her friend's business, which offered 3.00% p.m. more than the high-growth fund.

a. What monthly rate of simple interest was offered by the high-growth fund?

b. What would be the maturity amount after 7 months if she invested in her friend's business?

13)A bank offers interest rates of 1.30% p.a. for 60-day GICs and 1.75% p.a. for 120-day GICs. Leonie was considering the following two investment options at this bank:

Option A: Invest an amount in a 120-day GIC.

Option B: Invest an amount in a 60-day GIC then invest the maturity amount in a second 60-day GIC.

What interest rate should be offered on the 60-day GIC, 60 days from now, for Leonie to earn the same amount of money from either option?

14) Tiffany purchased an interest-bearing promissory note for $12,000.00 at 5.00% p.a., due in 90 days. If she sold the note in 36 days by discounting it at 6.00% p.a., calculate the proceeds of the note.

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