Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- Simple interest on $15,000 at 4 1/2% for eight months is _____.
- Simple interest on $20,000 at 7 1/2% for 17 months is _____.
- On June 8, Reed Ching borrowed $18,000 at 7%. Reed must pay the principal and interest on September 4. Using the exact interest method the maturity value is _____.
- The maturity value in No. 3 would be _____ using the ordinary interest method.
- Complete the following (assume 360 days):
| | Principal | Rate | Time | Simple Interest | | a. | ? | 6% | 90 days | $18,000 | | b. | $6,000 | ? | 300 days | $400 | | c. | $2,500 | 7 1/2% | ? | $550 |
- Aray Foger borrowed $7,000 for 60 days at 7%. On day 20, Aray made an $800 partial payment. On day 45, Aray made a $1,200 partial payment. What is Aray's ending balance under the U.S. Rule?
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