1. Find the annual simple interest rate equivalent to an annual simple discount rate of 3.1% over a term of 8 years.

2. Suppose Katy borrowed some amount of money for 64 weeks and Anastasia borrowed the same amount.

Katy's loan used the simple interest model with an annual rate of 8.7% while Anastasia's loan used the simple discount model with an annual discount of 5.4%.

At the end of their respective terms, Katy's maturity value was $5,061 while Anastasia's was $6,039.

How many weeks was Anastasia's loan for?

3. Considering the derived formula to be used in simple discount loans:

M = P 1 d R T

What annual simple discount rate is required for the debt to triple in 173 weeks?

Hint: divide both sides of the equation by P and think about the ratio M/P when M is three times as big as P.