Reference no: EM132465502

1. How many days will it take for $1950 to accumulate to $2125 at 6.5% p.a.?

2. Isabel received a demand loan from her bank for $8500 at 4% p.a. simple interest. Three months later, the prime rate increased and the rate on the laon changed to 4.25% p.a. If she repaid the loan in full in 8 months, calculate the total interest she paid on the loan.

3. An investment of $8000 for 18 months in an account earning simple interest resulted in a maturity value of $8600. If the interest rate had been 3% more, what would have been the maturity value? Hint: First calculate the interest rate for the original investment.

4. Ryan had to make payments of $2000 and $3000 in 10 months and 18 months, respectively, to a raw material supplier. What single payment in 5 months would settle both these payments? Assume an interest rate of 6% p.a. and use 5 months as the focal date.

5. The rate of return of a 182-day treasury bill with a face value of $20,000 is 5.25% p.a. Calculate the price on its issue date.

6. What is the term (rounded to the nearest month) for an investment of $2000 earning 5.6% p.a. simple interest to grow to $2133.67?

7. Merilyn, the owner of a small internet hosting business, loaned $4000 to an employee who promised to repay her $4600 after 8 months. Instead of loaning this money, if she had invested it in her local bank where the interest rate was 1.5% less than what she was offering her employee, how much would she have had in the bank at the end of 8 months? HINT: First calculate the interest rate that would have been charged on the loan

8. How long will it take for an investment to become one-and-a-half times the invested amount at 1.2% p.m. (per month)?

9. Cristiano borrowed $4225 from a money lender for 303 days. What would be the repayment amount if the interest rate charged was 7.2% p.a.?

10. Gabbie owes $3500 in 6 months and another $2500 in 11 months. What single payment in 9 months would settle both payments? Assume an interest rate of 0.75% p.m. (per month).