The Chicago Sun-Times announced that Dean Foods will buy Purity Diaries, which is based in Nashville, Tennessee. Dean Foods has an option of selling $5,000,000 in corporate bonds with a 5 ½% interest rate payable over the next 10 years. What is the total interest Dean Foods will pay over 10 years and what will be the maturity value?
Michelle Sanchez borrowed $25,000 to pay for her child's education at Hofstra University. Michelle must repay the loan at the end of 11 months in one payment with 9 ½% interest. How much interest must Michelle pay? What is the maturity value?
An article entitled "How to Retire with Money" appeared in the Gainesville, Florida, Sun. The article stated that a $10,000 investment would pay $3,000 in interest after 5 years. What is the bank's rate of interest?
The Chicago Sun-Times reported that the credit card interest rate at Central Carolina Bank of Columbus, Georgia, was 12%. What amount of interest would you pay on a $1,500 debt when the payment id due in 80 days?
The Credit Union Magazine stated that federal credit unions are limited to charging interest rates of no more than 18% per annum on any loan. A $2,500 loan is given to a member at 18%, and the interest is $225. When will the loan be due (assume 360 days)?
Rebecca Shore borrowed $80,000 to pay for her child's education at Ithaca College. Rebecca must repay the loan at the end of 8 months in one payment with 7 1/2 % interest. How much interest must Rebecca pay? What is the maturity value?
PR Newswire reported on a company that received a short-term loan. The loan was dated April 12, 2006, due April 30, 2006. The rate of interest was 6.5%. The interest earned was $162.50. Using ordinary interest, what was the original amount of the loan?
An article in Consumer Reports mentioned that with a good payment history you could be paying only 9% to 12% on credit cards. With a $560 charge, what would be the interest amount at 9% and 12% for 1 month?
You work in the Santa Monica, California, Community College financial aid office. It is your responsibility to validate information that students' families have put on their financial aid applications. A student indicated that last year the family listed $635 interest income from First National Bank on their 1040 income tax form. The family has indicated a savings amount of only $300. If the bank is paying simple interest of 3% annually, what should the family have in the bank account?
Debbie Mc Adams paid 8% interest on a $12,500 loan balance. Jan Burke paid $5,000 interest on a $62,500 loan. Based on 1 year: (a)What was the amount of interest paid by Debbie? (b) What was the interest rate paid by Jan? (c) Debbie and Jan are both in the 28% tax bracket. Since the interest is deductible, how much would Debbie and Jan each save in taxes?
