Business Math 1. Find the interest earned on $7125 deposited October 12th and wi
ID: 3013126 • Letter: B
Question
Business Math
1. Find the interest earned on $7125 deposited October 12th and withdrawn December 12th at a rate of 3.5% compounded daily?
2. Slater makes $196,200 per year as an airline pilot. He was notified of a 2.5% raise in a year in which the CPI index increases by 4%. Find the gain or loss in his purchasing power?
3. Lasting Effect Cabinets Inc. accepted a 3-year note for $11,125 in lieu of immediate payment for office supplies sold to a local firm. Find the maturity value given at 10% rate compounded annually and the present value of the note at 6% per year compounded semiannually?
Explanation / Answer
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Dear Student Thank you for using Chegg !! Given Principle amount deposited (P) = 7125 $ Deposition date = 12-Oct Withrawn date = 12-Dec No of days (n) = 61 days Rate of interest = 3.50% No of days in year = 365 ROI Compounded daily ('r) = 3.5%/365 = 9.58904E-05 Amount = P (1+r/100)^n = 7167 Interest = Amount - Principal = 42 $Related Questions
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