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1. A loan of $850 is made at 7.5% simple interest for 4 months. How much interest is owed when the loan is due?

   1.   ?    $21.25
   2.   ?    $255
   3.   ?    $871.25
   4.   ?    None of the answers given; click to see the solution.

2. A loan of $1800 is made at 11.3% simple interest for 60 days. What is the total amount due at the end of the time period? (Use a 360-day year.)

   1.   ?    $1833.90
   2.   ?    $33.90
   3.   ?    $14,004
   4.   ?    None of the answers given; click to see the solution.

3. A check for $5460 was used to pay off a loan which was made at a rate of 7.5% simple interest for 8 months. How much money was borrowed originally?

   1.   ?    $5200
   2.   ?    $5187
   3.   ?    $3500
   4.   ?    None of the answers given; click to see the solution.

4. A loan of $3200 was paid off at the end of 90 days with a check for $3276.80. What annual rate of interest was used? (Use a 360-day year.)

   1.   ?    9.6%
   2.   ?    2.67%
   3.   ?    2.4%
   4.   ?    None of the answers given; click to see the solution.

5. An advertisement for a loan company states that you only pay 12 cents per day for each $100 borrowed. If you borrow $800 for 50 days, what amount will you repay?

   1.   ?    $848
   2.   ?    $48
   3.   ?    $800.96
   4.   ?    None of the answers given; click to see the solution.

6. An advertisement for a loan company states that you only pay 12 cents per day for each $100 borrowed. If you borrow $800 for 50 days, what annual rate of interest is the company actually charging? (Use a 360-day year.) Note: This is a continuation of question #5.

   1.   ?    43.2%
   2.   ?    4.32%
   3.   ?    .12%
   4.   ?    None of the answers given; click to see the solution.