# data[].attributes.body
LU 10–1: Calculation of Simple Interest and Maturity Value

1. Calculate simple interest and maturity value for months and years.

2. Calculate simple interest and maturity value by (a) exact interest and (b) ordinary interest.

LU 10–2: Finding Unknown in Simple Interest Formula

1. Using the interest formula, calculate the unknown when the other two (principal, rate, or time) are given.

LU 10–3: U.S. Rule—Making Partial Note Payments before Due Date

1. List the steps to complete the U.S. Rule as well as calculate proper interest credits.

# data[].attributes.body
The U.S. Rule allows the borrower to receive proper interest credits. This rule states that any partial loan payment first covers any interest that has built up. The remainder of the partial payment reduces the loan principal.

# data[].attributes.attachment_link.title
Simple Interest: finding Principal, Rate or Time 141-27

# data[].attributes.body
Formulas:
Principal = Interest / (Rate x Time)
Rate = Interest / (Principal x Time)
Time (yrs) = Interest / (Principal x Rate)

# data[].attributes.body
The following formula is used to calculate the principal of a loan:

# data[].attributes.headline
Hope Slater borrowed $40,000 for office furniture. The loan was for 6 months at an annual interest rate of 4%. What are Hope’s interest and maturity value?

# data[].attributes.subject
Hope Slater borrowed $40,000 for office furniture. The loan was for 6 months at an annual interest rate of 4%. What are Hope’s interest and maturity value?

# data[].attributes.body
Using the simple interest formula, the bank determined Hope’s interest as follows: