1. To buy a laptop, Susan receives a $2000 loan at a 6.5% annual interest rate o
ID: 1941345 • Letter: 1
Question
1. To buy a laptop, Susan receives a $2000 loan at a 6.5% annual interest rate on January 10. The loan is due May 15. The year is not a leap year. Round the answers to the nearest cent (nearest hundredths)a) Find the ordinary interest that Susan will pay for the loan
Find the maturity value, MV for the loan. (5 Points)
Answer:
Find the maturity value, MV for the loan. (5 Points)
Answer:
2. Maryam pays $3000 on the 30th day of a $7,000, 120-day, and 8% loan.
a. What is the adjusted principal after the partial payment is made if ordinary interest is applied? (5 points)
Answer:
b. What is the adjusted balance due at maturity? (5 points)
Answer:
Explanation / Answer
1a) Formula for calculating interest off loan P[(1+r)^t-]=I Where P is the principle, or amount of money borrowed. r=rate,, 6.5% or .065 t=time, 125 days in this case I-interest so we get 2000[(1.065)^(125/365)-1]=$43.60 2) First we find how much interest is accrued in the first 30 days 7000[(1.08)^(30/120)-1]=135.97 so then 3000-135.97=2864.01 so the adjusted principle is now 7000-2864.01=$3864.01 Answer:$3864.01 b) The balance due at maturity is now: $3864.01(1.08)^(90/120)=$4093.61 Answer:$4093.61
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