MUST SHOW FORMULA STEPS! please and thank you! 4.)Suppose that on July 13, 2011
ID: 2658844 • Letter: M
Question
MUST SHOW FORMULA STEPS! please and thank you!
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.)PLease rememeber to account for the leap year (2012) 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 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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