1.)Find the amount of simple interest I would pay on a loan of $6,953.22 for 673
ID: 2658843 • Letter: 1
Question
1.)Find the amount of simple interest I would pay on a loan of $6,953.22 for 673 days at 6 5/8% simple interest.
2.)John has borrowed $13,750 for 150 days at 10.2% simple interest. Interest will be calculated using bankers rule. Find the total amount he will need to repay the loan
3.)Tessa borrowed $19,540. 7 months later she paid off the loan, paying a total of $20,635. What simple interest rate did she pay?
4.)Suppose that on July 13, 2011 I deposited $5,000 in a CD which matured on September 8, 2013. The simple interest rate was 4.25%. What was my account value at maturity?
5.)On February 17, 2012, Alison borrowed $5,200 from Canandaigua International Bank at 10.99% simple interest. (NOTE: 2012 was a leap year) At maturity, she will repay a total of $5,482.86. a) Find the term of the note (in days). (10 points) b) On what date will the note mature?
Explanation / Answer
Answer 1) $6,953.22 is taken as loan
simple interest is 6.5%/m
simple interest rate per month is $451.95
simple interest rate per day is $15.06
so simple interest rate for 673 days is 673*$15.06
interest rate is $10135 Approx
Answer 2) borrowed money $13,750 for 150 days at 10.2%
1% of $13,750 is $137.5
10.2% of $13,750 is $137.5x10.2%
then the interest amount he need to pay is $1402.5
then the total amount he need to pay is $13,750+$1402.5=$15152.5
Answer 3) borrowed $19,540
total amount paid is $20,635
simple interest she paid is $1095 for 7months
means simple interest she paid/month is $156.42
=$19,540/$156.42=124.92
=1.24% interest she paid is.
Answer 4) deposited Amount is $5,000
the gap between July 13, 2011 and September 8, 2013 is 815 days
simple interest rate was 4.25%/m
simple interest rate per month is $210.5
simple interest rate per day is $7.01
so simple interest rate for 815 days is 815*$7.01=$5713.15 Approx
Maturity value is $5713.15+(deposited Amount)$5,000=$10713.15
Answer 5)borrowed Amount $5,200
total of repaid amount $5,482.86
interest paid is $282.86
simple interest rate is 10.99%/m
10.99% interst is $570.48/m
$570.48/30days=19.01/day
interest paid is $282.86=$282.86/$19.01/day
answers for
a)interest paid for 14.87 days
date started from February 17, 2012 + 15 days Approx=32 days from February 17, 2012
b)March 3, 2012(including the lead day)
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