I= Prt FV = P(1 + rt) P = FV 1+rt 1. You repay a $4.000 loan from your parents with a single payment of $4,600. Your parents charged 6% simple interest. How many MONTHS ago did you borrow the money? [3] ANSWER (in months) 2. You repaid a loan plus interest with a single payment of $7,000 at the end of 18 months. If the lender charged 8% simple interest, how much of the $7,000 is interest? [3 marks) ANSWER: 3. On March 31, 2017 you borrowed $30,000 to start up a new business and agree to repay the loan plus interest on February 4, 2019. The bank charges you 8% simple interest. Note: March 31 is Day Number 90 and February 4 is Day Number 35 (a) How much is your accrued interest expense for 2017? [3 marks] Accrued Interest Expense for 2017 only - (b) How much must you pay on February 4, 2019 to fully pay it off? [3 marks]