Question

To be able to take her dream vacation, Leila decides to save for
4
years. She opens a savings account with
$500
. The account pays simple interest at an annual rate of
5%
. She doesn't make any more deposits.
Answer the following questions. If necessary, refer to the
list of financial formulas
.
(a) How much total interest will Leila earn?
$


(b) What will the total amount in the account be (including interest)?

Answer 1

Deshaun deposits
$6000
into an account that pays simple interest at an annual rate of
4%
. He does not make any more deposits. He makes no withdrawals until the end of
2
years when he withdraws all the money.
Answer the following questions. If necessary, refer to the
list of financial formulas
.
(a) How much total interest will Deshaun earn?
$


(b) What will the total amount in the account be (including interest)?
$

Answer 2

To go on a summer trip, Abdul borrows
$400
. He makes no payments until the end of
3
years, when he pays off the entire loan. The lender charges simple interest at an annual rate of
3%
.
Answer the following questions. If necessary, refer to the
list of financial formulas
.
(a) How much total interest will Abdul have to pay?
$


(b) What will the total repayment amount be (including interest)?

Answer 3

Tony invested in a savings bond for
5
years and was paid simple interest at an annual rate of
5%
. The total interest that he earned was
$175
. How much did he invest?

If necessary, refer to the
list of financial formulas
.

Answer 4

Juan borrowed
$5000
from a lender that charged simple interest at an annual rate of
8%
. When Juan paid off the loan, he paid
$800
in interest. How long was the loan for, in years?

If necessary, refer to the
list of financial formulas
.

Answer 5

Ivanna invested
$800
in a fund for
6
years and was paid simple interest. The total interest that she received on the investment was
$240
. As a percentage, what was the annual interest rate of her investment?

If necessary, refer to the
list of financial formulas
.

Answer 6

Jina obtains a loan for home renovations from a bank that charges simple interest at an annual rate of
3.6%
. Her loan is for
$14,300
for
99
days. Assume each day is
1365
of a year. Answer each part below.

Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the
list of financial formulas
.


(a) Find the interest that will be owed after
99
days.
$


(b) Assuming Jina doesn't make any payments, find the amount owed after
99
days