Progetto Clil - DIRITTO ed ECONOMIA DELL’AZIENDA

TEST – SIMPLE INTEREST & SIMPLE DISCOUNT

3’ ERICA

SIMPLE INTEREST - The use of a dictionary is not permitted

Exercise n. 1

Which of the following interest formulas are correct?

a /
b /
c /
d /
e /

Exercise n. 2

A loan made on April 22 was repaid on November 29. What is the time of the loan?

using a 360-day year
using a 365-day year

Exercise n. 3

Find the total amount repaid for a loan for € 4,200 at 7% simple interest for 94 days using the two different kinds of day year:

Write the solution below:

360 day year / 365 day year

Exercise n. 4

Use the exact time to find the due date of a loan that is made on 1stFebruary and is due in 126 days:

Normal year
Leap year

Exercise n. 5
(there may be more answers)

- Usually a Borrower is …

A subject who needs money

A bank

A subject who has a lot of money

An enterprise who has to pay a capital on a due date

- The future value is …

The interest to be paid on maturity

The principal

The present value and the interest at the end of period

PV – I

The interest charged for the use of money

- Suppose that the interest charged for a loan is calculated referring to the ordinary simple interest ; in which of the following cases, would you have (avreste) the same result?

Applying the formula and using the months

Applying the formula and using the years

Applying the formula and using a 365 day year

- Look at the formula ; why is the denominator equal to 1,200?

1,200 represents the rate of interest

Because in that case all the months are made of 30 days

1,200 is the result of multiplying 12 months by the denominator of a fractioned percentage

The formula is simply wrong

Exercise n. 6

Fill in the blanks using the appropriate word:

principal - year - invested - product - decimal - money

Interest is the fee (compenso) paid to use someone else's ______. Interest on a loan of one year or less is frequently calculated as simple interest, which is paid only on the amount borrowed or ______and not on past interest.

The amount borrowed or deposited is called ______. The rate of interest is given as a percent per ______and may be expressed as a ______.

Simple interest is the ______of the principal, rate, and time

Exercise n. 7

Look at the following timeline:

On February the 1st Mr. Smith invests € 2,400.00 in a saving account for 3 months at an interest rate of 5%. On the maturity date he collects (withdraws) the final value (time in months)

On the same day he lendsa friend the final value at an interest rate of 8%; what is the interest paid by the friend on the due date, that is the 31st August? (use a 365 day year)

Exercise n. 8 – Inverse Formula

The Amount you borrowed is € 1,060.00,annual Interest Rate is 9%, the Future value is 1,123.60; calculate the time (in months)

SIMPLE DISCOUNT - The use of a dictionary is not permitted

Exercise n. 9

True & False

1 / The direct formulas of Simple Interest and Simple Discount are the same / True / False
2 / The discount is subtracted from the Future value / True / False
3 / The term (100 - rt) is called discount factor / True / False
4 / The Future value is the amount that should be paid on the original maturity date / True / False

Exercise n. 10

Biondi SpA an Italian company fromMilan has sold goods to a foreign customer for € 3,850,000 that are due on 26 November. If the customer paid (pagasse) the debt in advanceon 10May at a discount rate of 4.0%, what amount should he pay? Use a 365 day year

Exercise n. 11 – Inverse Formula

Michael invested a certain amount of money in a bank; at the maturity date he will receive € 3,500.00. Calculate the discount rate for 3 months advance proceeds, considering that the discount granted is € 70.00.