(a)Hamid invests $8,560 at 4 percent simple interest in a bank. Find the amount in the account after 10months.

(5 marks)

(b)Donald saves$15,000on20March2019inanaccountthatofferr%simpleinterestper year. If the exact simple interest earned on 8 June 2019 is$80.00.

(i)Find the exact time of theinvestment.

(3 Marks)

(ii)Find the value of r using exacttime.

(4 Marks)

(c)ApromissorynotetoSitifor$5000at8%annualsimpleinterestfromMay5toSeptember 5.

(i)Find the bank discount using exact time and ordinaryinterest.

(4 marks)

(ii)Find the proceeds using ordinaryinterest.

(4marks)

Question4 [20marks]

(a)Five years ago, Adib saved $10,000 in an account that pays 6% compounded monthly. Nowheintendstoaddanother$xintotheaccount.Determinethevalueofxiftheaccount will amount to $30,000 in 10 years'time.

(8 marks)

(b)Angus invested $2,000 in an account that offered interest rate 8 percent compounded quarterly. Find the value of this investment after 5years.

(6 Marks)

(c)Findthefuturevalueofa3yearsinvestmentof$5,000thatearns6percentcompounded monthly.

(6marks)

Question5 [20marks]

(a)Usethestraight linemethodtofindtheannualdepreciationforavanthatcosts$18,000, has an expected life of 3 years and has a salvage value of$3,000.

(4 Marks)

(b)The cost of a fishing boat is $150,000. The declining balance method is used for computing depreciation. If the depreciation rate is 15 percent, compute the book value and accumulated depreciation of the boat at the end of 5years.

(6 Marks)

(c)A new equipment costing $10,000 is purchased. Using a declining balance rate of 12 percent, find the book value at the end of 5years.

(4 Marks)

(d)Construct a depreciation schedule using the straight line method for a new truck that costs $80,000 and has a salvage value of $8,000 at the end of 6years.