questions 45-54

45. F\" a me of 5-595 compounded monthly, determine the (3)110\"an Name _,____- rate. (5) periodic rate (round to 8 decimal pieces). and (c) APY. Challenge problems ANSWERS 46' Ll]? Kunke! pumhased merchandise from a supplier and failed to pay . , . the $780 invoice by the last day of the credit period (May 8}. Calculate 45- Nomlnal " the total amount Lily must pay on June 73 if the supplier charges Zl'z ' interest on past-due accounts. Periodic -'' ('0 c1 9' \"5/ at. w 47- June Whipple, a sporting goods remiler, purchased backpacks from a supplier for $7,245. The supplier offers a 5% discount if the invoice is 45_ _1_L_t-_~__._-___.__ paid within 10 days; if not paid within 10 days. the full amount must be I paid within 30 days or the invoice date. Use the formula 12 - i to find 41 ____.___-_____'_ i the annual rate June. in effect, is paying the supplier if she has to pay the invoice at the end of the discount period. Him: June is. in effect. 48 _'__________. borrowing the net amount (amount after deducting the discount) for 20 ' days and must pay the difference as interest. 49 48- Max needs some money to help pay his utilities. He borrows $100 from 59- _---' a pawn shop by giving the pawn shop a set of golf clubs worth about , $200. The pawn shop says he can repay the $100 plus 12% interest 51. M; ($100 x 12% = $12) in 30 days to redeem the golfclubs. What is the , , _' 3. APR? 52. ___..__-_ F or Problem: 49-52, do some calculations for delinquent property taxes. __-____'_.__- 49. You fail to pay your annual property taxes on the November 30. 2017 7 due date. If the tax was $1,235.18 and you are charged simple interest '-' at 12%, calculate the amount of interest you must pay if you make _ ;__ ' payment on June 18, 2018. 50. In addition to the 12% simple interest, you are charged a one-time 5% penalty for failing to pay the tax on time. What is the one-time penalty? 51. What is the total amount you must pay on June 18, 2018? 52. Calculate your APR (including the 5% penalty). 53. You are thinking about buying one of two bonds. The rst pays 7.15% compounded semiannually; the second pays 7.25% compounded annually. Which provides the greater return? 54. You are thinking about depositing $1,000 in a savings account for 3 _ years, earning 8% compounded scmiannually. What rate of simple interest would result in the same amount of interest? Don't round the rate. Hint: First, determine the ending balance (rounded to the nearest penny) for 8% compounded semiannually. Then, use the formula R - g to nd the rate that will result in the same amount of interest. 36 Homework Assignments