Calculate the two equal instalments

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Problem 1: Ronald borrowed $2,700 from a money lender. If the money lender charges interest at 15.50% p.a., calculate the amount of interest Benjamin had to pay the lender at the end of 19 days.

Problem 2: Scott invested money into a savings account at 5.00% p.a. simple interest. At the end of six months, the amount matured to $31,518.75.

a. What was the amount invested?

b. What was the interest earned?

Problem 3: Calculate the two equal instalments, one in one year and the other in two years, that would replace a payment of $1,600.00 today and a payment of $7,100.00 in five years. Assume money is worth 5.00% compounded semi-annually.

Reference no: EM132802244

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