Anything of value pledged by the borrower that the lender

The money a bank or other lending institution is willing to lend you is called the amount of credit extended or the of the loan.

Anything of value pledged by the borrower that the lender may sell or keep if the borrower does not repay the loan is called the or collateral.

The money the borrower pays for the use of the lenders money is called the .

When using the simple interest formula, the interest rate, r, is expressed as a(n) number.

When using the simple interest formula, time, t, is expressed in the same period as the .

A payment that is less than the full amount owed and made prior to the due date is known as a(n) payment.

If a partial payment is made on a loan, interest is computed on the principal from the first day of the loan until the date of the partial payment. This is known as the rule.

The Bankers rule considers a year to have days.

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = $300, r = 1.5%, t = 4 years

In Exercises 9 –18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent. p = $465, r = 2.75%, t = 1.25 years

Determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent. p = $1100, r = 8.75%, t = 90 days

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = $2500, r = 3 7 8 %, t = 9 months

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = $587, r = 0.045% per day, t = 2 months

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = $6742.75, r = 6.05%, t = 90 days

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = $2756.78, r = 10.15%, t = 103 days

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = +550.31, r = 8.9%, t = 67 days

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = +1372.11, r = 1 3 8 % per month, t = 6 months

In Exercises 9 18, determine the simple interest. Unless noted otherwise, assume the rate is an annual rate. Assume 360 days in a year. Round answers to the nearest cent.p = +41,864, r = 0.0375% per day, t = 60 days

p = +1500.00, r = ?, t = 4 years, i = +336.00

In Exercises 1924, use the simple interest formula to determine the missing value. If necessary, round all dollar figures to the nearest cent.p = ?, r = 2%, t = 90 days, i = +12.50

In Exercises 1924, use the simple interest formula to determine the missing value. If necessary, round all dollar figures to the nearest cent.p = ?, r = 6%, t = 5 months, i = +175.00

In Exercises 1924, use the simple interest formula to determine the missing value. If necessary, round all dollar figures to the nearest cent.p = +800.00, r = 4%, t = ?, i = +64.00

In Exercises 1924, use the simple interest formula to determine the missing value. If necessary, round all dollar figures to the nearest cent.p = +957.62, r = 6.5%, t = ?, i = +124.49

In Exercises 1924, use the simple interest formula to determine the missing value. If necessary, round all dollar figures to the nearest cent.p = +1650.00, r = ?, t = 6.5 years, i = +343.20

In Exercises 25–58, if necessary round all dollar figures to the nearest cent and round percents to the nearest hundredth of a percent. Small Business Administration Loan Joshua Leuchter uses the Small Business Administration (SBA) Loan Program to obtain a loan to help expand his vending machine business. Joshua borrows $25,000 for 2 years with a simple interest rate of 1.5%. Determine the amount of money Joshua must repay the SBA after 2 years.

Business Loan The city of Bradenton is offering simple interest loans to start-up businesses at a rate of 3.5%. Gaetano Cannata obtains one of these loans of $6000 for 3 years to help pay for start-up costs of his restaurant, Ortygia. Determine the amount of money Gaetano must repay the city after 3 years.

Bank Personal Note Karen Mosely borrowed $3500 from a bank for 6 months. Her friend Ms. Harris was cosigner of Karens personal note. The bank collected 7 1 2 % simple interest on the date of maturity. a) How much did Karen pay for the use of the money? b) Determine the amount she repaid to the bank on the due date of the note.

Bank Discount Note Kwame Adebele borrowed $2500 for 5 months from a bank, using U.S. government bonds as security. The bank discounted the loan at 2%. a) How much interest did Kwame pay the bank for the use of its money? b) How much did he receive from the bank? c) What was the actual rate of interest he paid?

Bank Discount Note Julie Monte borrowed $3650 from her bank for 8 months. The bank discounted the loan at 7.5%. a) How much interest did Julie pay the bank for the use of its money? b) How much did she receive from the bank? c) What was the actual rate of interest she paid?

Credit Union Loan Enrico Montoyo wants to borrow $350 for 6 months from his credit union, using his savings account as security. The credit unions policy is that the maximum amount a person can borrow is 80% of the amount in the persons savings account. The interest rate is 2 percentage points higher than the interest rate being paid on the savings account. The current rate on the savings account is 3.25%. a) How much money must Enrico have in his account to borrow $350? b) What is the rate of interest the credit union will charge for the loan? c) Find the amount Enrico must repay in 6 months.

Investing Tuition Payments Sand Ridge School is requiring parents to pay half of the yearly tuition at the time of registration and half on the date classes begin. Registration is held 5 months prior to the beginning of school, and administrators expect 470 students to register. If annual tuition is $4500 and if the money paid at the time of registration is placed in an account paying 5.4% simple interest, how much interest will Sand Ridge School earn by the time school begins?

A Pawn Loan Jeffrey Kowalski wants to take his mother out for dinner on her birthday, but he doesnt get paid until the following week. To borrow money, Jeffrey pawns his watch. Based on the value of the watch, the pawnbroker loans Jeffrey $75. Fourteen days later, Jeffrey gets his watch back by paying the pawnbroker $80.25. What annual simple interest rate did the pawnbroker charge Jeffrey?

In Exercises 3338, determine the exact time from the first date to the second date. Use Table 11.1. Assume the year is not a leap year unless otherwise indicated.March 17 to November 11

In Exercises 3338, determine the exact time from the first date to the second date. Use Table 11.1. Assume the year is not a leap year unless otherwise indicated.January 17 to October 10

In Exercises 3338, determine the exact time from the first date to the second date. Use Table 11.1. Assume the year is not a leap year unless otherwise indicated.February 2 to October 31 (the loan is due in a leap year)

In Exercises 3338, determine the exact time from the first date to the second date. Use Table 11.1. Assume the year is not a leap year unless otherwise indicated.June 14 to January 24

In Exercises 3338, determine the exact time from the first date to the second date. Use Table 11.1. Assume the year is not a leap year unless otherwise indicated.August 24 to May 15

In Exercises 3338, determine the exact time from the first date to the second date. Use Table 11.1. Assume the year is not a leap year unless otherwise indicated.December 21 to April 28

In Exercises 39 42, determine the due date of the loan, using the exact time, if the loan is made on the given date for the given number of days.April 15 for 100 days

In Exercises 39 42, determine the due date of the loan, using the exact time, if the loan is made on the given date for the given number of days.May 11 for 120 days

In Exercises 39 42, determine the due date of the loan, using the exact time, if the loan is made on the given date for the given number of days.November 25 for 120 days (the loan is due in a leap year)

In Exercises 39– 42, determine the due date of the loan, using the exact time, if the loan is made on the given date for the given number of days. July 5 for 210 days

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$3000 4% May 1 $1000 June 1 July 1

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$6000 7% Jan. 15 $2500 Mar. 1 Apr. 15

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$2400 5.5% Feb. 1 $1000 May 1 Aug. 31

In Exercises 43–52, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$9000 6% July 15 $4000 Dec. 27 Feb. 1

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$1000 12.5% Jan. 1 $300 Jan. 15 Feb. 15

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$1800 15% Aug. 1 $500 Sept. 1 Nov. 1 $500 Oct. 1

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$5000 14% Oct. 15 $800 Nov. 15 Jan. 1 $800 Dec. 15

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$11,600 6% Mar. 1 $2000 Aug. 1 Dec. 1 $4000 Nov. 15

In Exercises 4352, a partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.$21,000 4 3 8 % July 12 $8000 Oct. 10 Jan. 30 $6000 Dec. 8

Company Loan On March 1, the Zwick Balloon Company signed a $6500 note with simple interest of 10 1 2 % for 180 days. The company made payments of $1750 on May 1 and $2350 on July 1. How much will the company owe on the date of maturity?

Restaurant Loan The Sweet Tooth Restaurant borrowed $3000 on a note dated May 15 with simple interest of 11%. The maturity date of the loan is September 1. The restaurant made partial payments of $875 on June 15 and $940 on August 1. Find the amount due on the maturity date of the loan.

U.S. Treasury Bills The U.S. government borrows money by selling Treasury bills. Treasury bills are discounted notes issued by the U.S. government. On May 5, 2011, Kris Greenhalgh purchased a 182-day, $1000 U.S. Treasury bill at a 0.15% discount. On the date of maturity, Kris will receive $1000.a) What is the date of maturity of the Treasury bill? b) How much did Kris actually pay for the Treasury bill? c) How much interest did the U.S. government pay Kris on the date of maturity? d) What is the actual rate of interest of the Treasury bill? (Round the answer to the nearest ten-thousandths of a percent.)

U.S. Treasury Bills On August 31, 2011, Trinity Lopez purchased a 364-day, $6000 U.S. Treasury bill at a 0.45% discount. (See Exercise 55.) a) What is the date of maturity of the Treasury bill (2012 is a leap year)? b) How much did Trinity actually pay for the Treasury bill? c) How much interest did the U.S. government pay Trinity on the date of maturity? d) What is the actual rate of interest of the Treasury bill? (Round the answer to the nearest thousandths of a percent.)

Tax Preparation Loan Many tax preparation organizations will prepay customers tax refunds if they pay a one-time finance charge. In essence, the customer is borrowing the money (the refund minus the finance charge) from the tax preparer, prepaying the interest (as in a discount note), and then repaying the loan with the tax refund. This procedure allows customers access to their tax refund money without having to wait. Joy Stallard had a tax refund of $743.21 due. She was able to get her tax refund immediately by paying a finance charge of $39.95. What annual simple interest rate is Joy paying for this loan assuming a) the tax refund check would be available in 5 days? b) the tax refund check would be available in 10 days? c) the tax refund check would be available in 20 days?

Prime Interest Rate Nick St. Louis borrowed $600 for 3 months. The banker said that Nick must repay the loan at the rate of $200 per month plus interest. The bank was charging a rate of 2% above the prime interest rate. The prime interest rate is the rate charged to preferred customers of the bank. During the first month the prime interest rate was 4.75%, during the second month it was 5%, and during the third month it was 5.25%. a) Find the amount Nick paid the bank at the end of the first month, at the end of the second month, and at the end of the third month. b) What was the total amount of interest Nick paid the bank?

U.S. Treasury Bills Mark Beiley purchased a 52-week U.S. Treasury bill (see Exercises 55 and 56) for $93,337. The par value (the value of the bill upon maturity) was $100,000. a) What was the discount rate? b) What was the actual interest rate Mark received? c) Since U.S. Treasury bills are sold through auctions at Federal Reserve Banks, Mark did not know the purchase price of his Treasury bill until after he was notified by mail. If Mark had sent the Federal Reserve Bank a check for $100,000 to purchase the Treasury bill, how much would the Federal Reserve Bank have to rebate him upon notice of his purchase? d) On the day Mark received the rebate that was discussed in part (c), he invested it in a 1-year certificate of deposit yielding 5% interest. What is the total amount of interest he will receive from both investments?

Columbus Investment On August 3, 1492, Christopher Columbus set sail on a voyage that would eventually lead him to the Americas. If on this day Columbus had invested $1 in a 5% simple interest account, determine the amount of interest the account would have earned by the following dates. Use a scientific calculator and disregard leap years in your calculations. a) December 11, 1620 (Pilgrims land on Plymouth Rock) b) July 4, 1776 (Declaration of Independence) c) December 7, 1941 (U.S. enters World War II) d) Todays date

Loan Sources Consider the following places where a loan may be obtained: banks, savings and loans, credit unions, and pawnshops. Write a report that includes the following information: a) Describe the ownership of each. b) Historically, what need is each fulfilling? c) What are the advantages and disadvantages of obtaining a loan from each of those places listed?