1. This document contains the solutions to 9 questions regarding simple interest calculations.
2. The questions involve calculating interest earned on various principal amounts over different time periods at given interest rates.
3. Final answers are underlined as instructed and expressed to hundredths place or nearest hundredth as specified in particular questions.
1. This document contains the solutions to 9 questions regarding simple interest calculations.
2. The questions involve calculating interest earned on various principal amounts over different time periods at given interest rates.
3. Final answers are underlined as instructed and expressed to hundredths place or nearest hundredth as specified in particular questions.
1. This document contains the solutions to 9 questions regarding simple interest calculations.
2. The questions involve calculating interest earned on various principal amounts over different time periods at given interest rates.
3. Final answers are underlined as instructed and expressed to hundredths place or nearest hundredth as specified in particular questions.
1. This document contains the solutions to 9 questions regarding simple interest calculations.
2. The questions involve calculating interest earned on various principal amounts over different time periods at given interest rates.
3. Final answers are underlined as instructed and expressed to hundredths place or nearest hundredth as specified in particular questions.
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Quiz 2F
Oren, Leslie Joy A. Oren
MATH01G AC102 9th December 2020 Please show your solutions... Please follow the proper numbering… Underline your final answer... Note: All answers to nearest hundredth except No. 9 1. Michiko borrowed $25,000 .00 for 2 ¼ years at 8% per year. Find the amount of simple interest Ans: $ 4,500.00 I = PRT I = ($25,000) (2 1/4) (8%/100) I = ($25,000) (2.25) (0.08) I = $ 4,500.00 2. Find the amount of simple interest if Yoko Ono invested $17,600.00 for 7 months at 7.5%. Ans: $ 770.00 I = PRT I = ($17,600) (7/12) (7.5%/100) I = ($17,600) (0.58333333) (0.075) I = $ 770.00 3. Suzuki borrowed $37,000.00 at 8 ½ % simple interest for 120 days. Find the (to nearest cents) a) Exact Interest Ans: $ 1,033.97 Ie = PRT Ie = ($37,000) (8 ½) (120/365) Ie = ($37,000) (0.085) (0.32876712) Ie = $ 1,033.97 b) Ordinary Interest Ans: $ 1,048.33 Io = PRT Io = ($37,000) (8 ½) (120/360) Io = ($37,000) (0.085) (0.33333333) Io = $ 1,048.33 4. Find the maturity value of a loan of $43,200.00 made for 11 months at 7 ¼ % simple interest. Ans: $ 46,071.00 M = P + PRT M =43,200 + (43,200) (11/12) (7 ¼) M=43,200 + (43,200) (0.91666667) (0.0725) M =43,200 + 2,871 M =$ 46,071.00 5. Yamada borrowed a certain amount of money for 144 days at 9 ½ % simple interest. If he was charged $1,900.00, what was the a) Original loan? Ans: $ 50,000.00 P = I / RT P = 1,900 / (9 ½) (144/360) P = 1,900 / (0.095) (0.4) P = 1,900/ 0.038 P = $ 50,000.00 b) Amount he paid at the end of 144 days? Ans: $ 51,900.00 M=P+I M = 50,000 + 1,900 M = $ 51,900.00 6. Yoshida deposited $60,000.00 in a savings bank and it became $61,625.00 at the end of 150 days. Find the percentage of the principal per year? Ans: 0.065% or 6.5% R = I / PT R= $1,625 / ($60,000) (150 / 360) R= $1,625 / 25,000 R= 0.065% or 6.5%
7. Masako placed $120,000.00 in Real Estate at 8%. How
many days will it take her to obtain an interest of $4,000.00? Ans: 153.3 days T= I / PR T= $4,000 / ($120,000) (8%) T=$ 4,000 / ($120,000) (0.08) T= 4,000 / 9,600 T= 0. 42 x 365 days / 1 year = 153.3 days 8. Kawazima owns a simple discount note that has a face value of $28,000.00 and proceeds of $27,000.00. What is the discount rate to the nearest hundredth if the note is for 125 days? Ans: 0.10 /10 % D = B / MT B=M–P B = $28,000.00 – $27,000.00 B = 1,000 D = $1,000 / ($28,000.00) (125/ 360) D = 0.10 /10 % 9. Iman owns a simple discount note of $25,000.00 at 8% for 90 days. Find the true rate of interest to the nearest ones. Ans: 8% I = PRT I = ($25,000) (0.08) (90 /360) I = ($25,000) (0.08) (0.25) I= $500 Re = B / ( Pr x T) x 100 % Re = 500 / ($24,500) (90 /360) Re = 500 / ($24,500) (0.25) Re = (500 / 6,125) x 100% Re = 0.08 x 100% Re = 8%