CHECK Your Understanding 1. Alex borrowed $2500 to help pay for his summer school tuition. His bank offered him a simple interest rate of 2.4%, with the entire amount to be paid in full in 1 year. a) What amount did Alex need to pay back? b) How much interest did Alex need to pay? 2. In November, Holly borrowed $1200 at 11.2%, compounded monthly, to buy gifts for her family. Holly arranged to pay off the loan in 6 months, with a single payment. a) What amount did Holly need to pay back? b) What amount of interest did Holly pay? 3. Matt is laying new floors in three rooms of his house and needs a loan that he will not have to pay back for 18 months. The interest rate for the loan is 4.9%, compounded quarterly. On the maturity date, Matt wants to make a single payment of no more than $12 000. a) What is the most that Matt can borrow? b) How much interest will Matt pay on his loan? 4. David mows lawns as a part-time job. He needs to buy a new lawn tractor, which will cost $6583. The bank offers him a loan at 12.4%, compounded monthly, with payments of $250 at the end of each month. a) How long will David need to make payments? b) How much interest will he pay