32-44

32. You borrow $300 from your uncle and agree to repay him $350 ($300 Name principal plus $50 interest) in 18 months. What interest rate are you paying? Class ANSWERS 33. You get a 180-day $3,000 consumer loan at 11%, You are required to pay a $100 setup fee at the time you get the loan. What is your APR? 32. 33. 34. A lender makes a $12,500 loan for 90 days at 10% interest, using a 360- day year. What is the APR? 34. 35. You get a payday loan. The lender charges you $10 per week for each 35. $100 you borrow. Assuming you borrow $500 for 2 weeks, what APR will you be paying? 36. 37. 36. You get a loan using the discount method. You sign a note, agreeing to 38 . repay the lender $12,000 in 180 days. Assuming a discount rate of 10.5%, determine the APR. 39. 40. Unit 9.3 Compound interest 41. For Problems 37-39, calculate the periodic rate. 42. 37. 6% compounded semiannually 38. 9% compounded quarterly 43. 39. 10.5% compounded monthly 40. Laurie Ingalls loans a friend $400 at 5% simple interest for 3 years. What is the maturity value? 41. Troy Woods deposits $400 in a savings account. The money is left on deposit for 3 years earning 5% compounded annually. Calculate the account balance at the end of 3 years. 42. Isaac Franco deposits $400 in a savings account. The money is left on deposit for 3 years earning 5% compounded semiannually. Calculate 44 . the account balance at the end of 3 years. Do not round intermediate results. 43. Refer to Problems 40-42. Who ended up with the most money, and why? 44. You just received your yearly bonus from work and have decided to deposit the money in a savings account. Your bank pays 5.75% compounded quarterly, and your credit union pays 5.85% compounded annually. Determine which rate provides the greater return by calculating the APY for each