# *PLEASE SHOW YOUR WORK* Question 1: Calculate the amount of interest that will be charged on \$6800.00 borrowed for five months at 4. (3 marks)…

Question 1:

Calculate the amount of interest that will be charged on \$6800.00 borrowed for five months at 4.8%. (3 marks)

Question 2:

Compute the amount of interest on \$310.00 at 7.90% p.a. from March 30, 2014 to October 28, 2014. (4 marks)

Question 3:

Alex borrowed \$9 300 to buy a car. If interest is charged on a loan at 7.5%, how much interest would he have to pay in 130 days. (3 marks)

Question 4:

At what rate of interest will \$999.00 earn \$48.74 in 204 days? (3 marks)

Question 5:

In how many months will \$4 800 grow to \$5 900.00 at 10.1% p.a.? (3 marks)

Question 6:

Leo wishes to invest \$7 820.00 that he saved from his summer job.  His bank offers 4.25% for a one-year term investment or 4% for a six-month term. Help Leo to investigate his options.

a) How much will Leo receive after one year if he invests at the one-year rate? (2 marks)

b) How much will Leo receive after one-year if he invests for six-months at a time at 4% each time? (3 marks)

Question 7:

What sum of money will accumulate to \$4350.00 at 12.75% p.a. in 472 days? (3 marks)

Question 8:

Three debts, the first for \$1850 due four months ago, the second for \$1290 due in 5 months, and the third for \$1700 due in 7 months, are to be paid by a single payment today. How much is the single payment if money is worth 6.6% p.a. and the agreed focal date is today? (5 marks)