Simple Interest – NBC Institute

BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets

Calculate the simple interest rate for a 3-month loan.

Question

Ronny wants to borrow N160,000 from his friend. He is willing to pay back N174,400 in 3 months. What simple interest rate will be applicable?
A. 34%
B. 35.5%
C. 36%
D. 36.5%
E. 37%

Answer

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Tags: Interest Rate, Loan Repayment, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2020

QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance

Calculate the value of an investment with compound interest, the payoff amount for a loan with simple interest, and the additional interest for a loan with monthly payments and reduced interest rates.

Question

a. If N250,000 is invested in an account that earns 4% per year compound interest, what is the:
i. value of the investment after 5 years? (3 Marks)
ii. total interest earned? (2 Marks)

b. When it was apparent that your parents could not afford to finance your university education, you sought and obtained a 4-year loan of N250,000.00 from Education Bank Limited. The bank imposed a simple interest rate of 7½%.
i. How much do you need to pay off the bank now

(4 years after) that you are through with your study?

(7 Marks)
ii. If you decide to be paying N25,000 every month from now and the bank agreed to reduce the interest rate to 1% per month on the unpaid balance at the beginning of the month, how much additional total interest will be paid? (8 Marks)

Answer

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Tags: Compound Interest, Interest calculation, Loan Repayment, Simple Interest
Level: Level 1

Topic: Mathematics of Business Finance
Series: NOV 2014

BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Calculates the simple interest rate Blake will pay when borrowing N120,000 from Jerry and repaying N127,000 in 3 months.

Question

Blake wants to borrow N120,000 from Jerry. Blake is willing to pay back N127,000 in 3 months, what simple interest rate will he pay?
A. 21.33%
B. 22.33%
C. 23.33%
D. 24.33%
E. 25.33%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Calculations, Interest Rate, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2021

BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets

Calculates the simple interest on a loan of N150,000 at 6% p.a. for 18 months.

Question

Brown borrowed N150,000 at 6% p/a simple interest for 18 months, what is the value of interest due at the end of the period?
A. N13,200
B. N13,500
C. N13,800
D. N14,000
E. N14,200

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Calculations, Loan Repayment, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2021

BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the interest due on a loan using simple interest

Question

Jeta borrowed N800,000 at 6% simple interest for 7 months. What is the value of interest due at the end of the period?
A. N25,000
B. N26,000
C. N27,000
D. N28,000
E. N29,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Loan Calculation, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2019

BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets

Calculate the simple interest rate for a 3-month loan.

Question

Ronny wants to borrow N160,000 from his friend. He is willing to pay back N174,400 in 3 months. What simple interest rate will be applicable?
A. 34%
B. 35.5%
C. 36%
D. 36.5%
E. 37%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Interest Rate, Loan Repayment, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2020

QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance

Calculate the value of an investment with compound interest, the payoff amount for a loan with simple interest, and the additional interest for a loan with monthly payments and reduced interest rates.

Question

a. If N250,000 is invested in an account that earns 4% per year compound interest, what is the:
i. value of the investment after 5 years? (3 Marks)
ii. total interest earned? (2 Marks)

(4 years after) that you are through with your study?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Compound Interest, Interest calculation, Loan Repayment, Simple Interest
Level: Level 1

Topic: Mathematics of Business Finance
Series: NOV 2014

BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Calculates the simple interest rate Blake will pay when borrowing N120,000 from Jerry and repaying N127,000 in 3 months.

Question

Blake wants to borrow N120,000 from Jerry. Blake is willing to pay back N127,000 in 3 months, what simple interest rate will he pay?
A. 21.33%
B. 22.33%
C. 23.33%
D. 24.33%
E. 25.33%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Calculations, Interest Rate, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2021

BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets

Calculates the simple interest on a loan of N150,000 at 6% p.a. for 18 months.

Question

Brown borrowed N150,000 at 6% p/a simple interest for 18 months, what is the value of interest due at the end of the period?
A. N13,200
B. N13,500
C. N13,800
D. N14,000
E. N14,200

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Calculations, Loan Repayment, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2021

BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the interest due on a loan using simple interest

Question

Jeta borrowed N800,000 at 6% simple interest for 7 months. What is the value of interest due at the end of the period?
A. N25,000
B. N26,000
C. N27,000
D. N28,000
E. N29,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Loan Calculation, Simple Interest
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2019

Question Tag: Simple Interest

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BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets

Calculate the simple interest rate for a 3-month loan.

QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance

Calculate the value of an investment with compound interest, the payoff amount for a loan with simple interest, and the additional interest for a loan with monthly payments and reduced interest rates.

BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Calculates the simple interest rate Blake will pay when borrowing N120,000 from Jerry and repaying N127,000 in 3 months.

BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets

Calculates the simple interest on a loan of N150,000 at 6% p.a. for 18 months.

BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the interest due on a loan using simple interest

BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets

Calculate the simple interest rate for a 3-month loan.

QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance

Calculate the value of an investment with compound interest, the payoff amount for a loan with simple interest, and the additional interest for a loan with monthly payments and reduced interest rates.

BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Calculates the simple interest rate Blake will pay when borrowing N120,000 from Jerry and repaying N127,000 in 3 months.

BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets

Calculates the simple interest on a loan of N150,000 at 6% p.a. for 18 months.

BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the interest due on a loan using simple interest

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BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets

Calculate the simple interest rate for a 3-month loan.

You're reporting an error for "BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets"

QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance

Calculate the value of an investment with compound interest, the payoff amount for a loan with simple interest, and the additional interest for a loan with monthly payments and reduced interest rates.

You're reporting an error for "QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance"

BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Calculates the simple interest rate Blake will pay when borrowing N120,000 from Jerry and repaying N127,000 in 3 months.

You're reporting an error for "BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets"

BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets

Calculates the simple interest on a loan of N150,000 at 6% p.a. for 18 months.

You're reporting an error for "BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets"

BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the interest due on a loan using simple interest

You're reporting an error for "BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets

Calculate the simple interest rate for a 3-month loan.

You're reporting an error for "BMF – Nov 2020 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets"

QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance

Calculate the value of an investment with compound interest, the payoff amount for a loan with simple interest, and the additional interest for a loan with monthly payments and reduced interest rates.

You're reporting an error for "QTB – Nov 2014 – L1 – SB – Q6 – Mathematics of Business Finance"

BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Calculates the simple interest rate Blake will pay when borrowing N120,000 from Jerry and repaying N127,000 in 3 months.

You're reporting an error for "BMF – May 2021 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets"

BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets

Calculates the simple interest on a loan of N150,000 at 6% p.a. for 18 months.

You're reporting an error for "BMF – May 2021 – L1 – SA – Q14 – Basics of Business Finance and Financial Markets"

BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Calculating the interest due on a loan using simple interest

You're reporting an error for "BMF – Nov 2019 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

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