Practice Quiz - Section 3-1 (Form B) - Simple Interest

Multiple-choice exercise

Work out the problem on paper and then choose the letter for your answer. After you have successfully answered all questions, look at the top of the page to see how you did.

When you are finished with the quiz, click "Return to Table of Contents" if you would like to return to the Table of Contents to try another quiz.

A loan of $750 is made at 9.5% simple interest for 4 months. How much interest is owed when the loan is due?

$23.75

$285

$973.75

None of the answers given; click to see the solution.

A loan of $1200 is made at 12.4% simple interest for 60 days. What is the total amount due at the end of the time period? (Use a 360-day year.)

$1224.80

$24.80

$10128

None of the answers given; click to see the solution.

A check for $6369 was used to pay off a loan which was made at a rate of 8.2% simple interest for 9 months. How much money was borrowed originally?

$6000

$5977.31

$3664.56

None of the answers given; click to see the solution.

A loan of $5400 was paid off at the end of 60 days with a check for $5502.60. What annual rate of interest was used? (Use a 360-day year.)

11.4%

3.17%

1.9%

None of the answers given; click to see the solution.

An advertisement for a loan company states that you only pay 11 cents per day for each $100 borrowed. If you borrow $700 for 50 days, what amount will you repay?

$738.50

$38.50

$700.77

None of the answers given; click to see the solution.

An advertisement for a loan company states that you only pay 11 cents per day for each $100 borrowed. If you borrow $700 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.

39.6%

3.96%

.11%

None of the answers given; click to see the solution.