**QRB 501 Week 5 Individual Assignment**

**Question 1**

Find the interest paid on a loan of $1,200 for three years at a simple interest rate of 5% per year.

How much money will you pay after three years?

**Question 2**

Find the maturity value of a loan of $1,750 for 28 months at 9.8% simple interest per year.

**Question 3**

Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interest.

**Question 4
**

A loan of $16,840 is borrowed at 9% simple interest and is repaid with $4,167.90 interest. What is the duration of the loan?

**Question 5**

How much money is borrowed if the interest rate is 9.25% simple interest and the loan is made for 3.5 years and has $904.88 interest?

**Question 6**

Find the ordinary and exact interest for a loan of $1000 at a 5% annual interest rate. The loan was made on March 15 and is due May 15.

**Question 7**

Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for $7,200 at 8.25% annual simple interest from August 8 to November 8.

**Question 8**

What is the effective interest rate of a simple discount note for $8,000, at an ordinary bank discount rate of 11%, for 120 days?

**Question 9**

What is the effective interest rate for the ﬁrst year for a loan of $20,000 for three years if the interest is compounded quarterly at a rate of 12%?

**1. **Ross Land has a loan of $8,500 compounded quarterly for four years at 6%. What is the effective interest rate for the ﬁrst year for the loan?

**2. **Find the effective interest rate for the ﬁrst year for a loan for four years compounded semiannually at an annual rate of 2%

**3. **What is the effective interest rate for the ﬁrst year for a loan of $5,000 at 10% compounded daily for three years?

**4.** Depending on the issuer, a typical credit card agreement quotes an interest rate of 18 percent APR. Monthly payments are required.

What is the actual interest rate you pay on such a credit card?

**5. **Find the effective interest rate for a loan of $3,500 at 10% interest compounded quarterly.

**Question 10**

Tim Bowling has $20,000 invested for three years at a 5.25% annual rate compounded daily.

How much interest will he earn?

**Exercise **

Find the future value of a $15,000 money market investment at 2.8% annual interest compounded daily for three years.

**Question 11**

The Holiday Boutique would like to put away some of the holiday profits to save for a planned expansion. A total of $8,000 is needed in three years. How much money in a 5.2% three-year certificate of deposit that is compounded monthly must be invested now to have the $8,000 in three years?

**Exercise **

How much should be invested now to have $15,000 in six years if interest is 4% compounded quarterly?

**Question 12**

Jamie Juarez needs $12,000 in 10 years for her daughter’s college education.

How much must be invested today at 2% annual interest compounded semiannually to have the needed funds?

A loan of $8,000 for two acres of woodland is compounded quarterly at an annual rate of 6% for ﬁve years. Find the compound amount and the compound interest.