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Recall the following formula that we derived for use in simple interest loans.
P=M/1+RT
How many months would it take for the debt to double on a simple interest loan whose annual rate is 8.12%? In other words, find the doubling time.
Hint: divide both sides of the equation by M and think about the ratio P/M when M is twice as big as P.
Round your answer to the nearest month.
Compute the probability that random selected person sleeps more than 8 hours?
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The face value is $1000. If the market rate of interest is 5.7%, what is the current market price of XYZ's bond?
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