LAB 6

1) How long will it take for an investment to double at simple interest rate of 5.10% p.a.?

2) Jason received a loan at 2% p.a. simple interest for 6 months. If he was charged an interest of $75.00 at the end of the period, what was the principal amount of the loan?

3) Edward was charged interest of $80 for a loan amount of $2,400 that he borrowed for 120 days. What annual rate of simple interest was charged?

4) What annual rate of simple interest was charged on a loan of $7,200.00 that was issued on October 28, 2014, if it accumulated $445.41 in interest by March 4, 2015?

5) Jennifer borrowed $6,700 at 6.25% p.a. simple interest. How long did he take to repay the loan if he was charged interest of $250. (round up to the next day)

6) Bryan's investment in his savings account matured to $4,678.26 at the end of 195 days. If the account was earning simple interest at a rate of 1.50% p.a., answer the following.

a.What was Bryan's initial investment?

b.How much interest did Bryan earn?

7) Aaron invested his savings of $1,025 in a savings account that was earning simple interest at 2.90% p.a. He also invested $3,225 in his friend's business at 0.32% p.m.

a.What is the interest rate per month that is equivalent to 2.90% p.a.?

b.What was the total interest earned from both investments at the end of 14 months?

8) Rebecca earned $2,994 as interest by lending a certain amount at a simple interest rate of 2.00% p.m. for 12 months.

a.Calculate the principal amount of the loan.

b.Calculate the maturity value of the loan.

9) After 9 months of investing $540 in a high-growth fund, Justin's investment had a maturity amount of $567 in the fund. He also had the option to invest the same amount in his friend's business, which offered 2.50% p.m. more than the high-growth fund.

a.What monthly rate of simple interest was offered by the high-growth fund?

b.What would be the maturity amount after 9 months if he invested in his friend's business?