1. CentSmart Inc. deposited $83 215 into an account that had a simple interest rate of 2.3% on February

27th, 2015. On New Year's Eve, how much interest had been earned on that deposit?

(5 marks)

2. If Inez is charged an interest of $42.95 on a loan of $950.00 for seven months, calculate the rate of

interest charged on the loan

(3 marks).

3. An investment of $12 000.00 earns an interest of $480.00. Calculate the time in months if the interest

rate is 6%

(3 marks).

4. Find the value of $832.00 invested at 8.8% from May 20, 2013, to November 23,

2013 (3 marks).

5. What sum of money will accumulate to $3700.00 at 14.75% p.a. in 451 days

(4 marks)?

6. Leo wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year

term investment or 3.5% for a six-month term. Help Leo to investigate his options

(9 marks)

.

a) How much will Leo receive after one year if he invests at the one-year rate?

b) How much will Leo receive after one-year if he invests for six-months at a time at 3.5% each time?

c) What would the one-year rate have to be to yield the same amount of interest as the investment

described in part b)?

7. Today is November 5

th

2021.

A loan payment of $1700 was due September 6

th

2021 and another

payment of $1200 is due on December 20

th

2021. What single payment on Feb 3

rd

2022 will pay off the two

obligations if interest is to be 14% and the agreed focal date is 90 days from no