UNIT 4 - REVIEW 1 1) Show ALL work, as stated in class, for FULL marks. 2) Round final answers to 2 decimal places, where appropriate. 3) Include units with all FINAL answers. 1. What amount of interest will be charged on $650 borrowed for 16 months at a simple interest rate of 6%4% per annum? 2. What principal will earn $67.14 interest at 6.25% per annum for 82 days? 3. Sherrie borrowed $3,200 on May 13, 2011, and will repay the loan on March 21, 2012. If interest of $125.13 was charged, what simple annual rate of interest was charged on the loan? 4. How many months does it take a $5,000 investment to grow to $5734, if the interest rate was 6%? 5. For how many days would a loan of $1500 be outstanding to earn interest of $36.16 at 5.5% p.a.? 6. What principal will have a maturity value of $10,000 at 8.25% p.a. after three months? 7. At the end of 8 months, Belinda's investment in her savings account matured to $3991.25. If interest is calculated at %% per month, how much was Belinda's original investment? 8. On April 1, 2014 Tim purchased a short-term investment maturing July 1, 2014. The investment would earn 3.65% p.a. How much will the investment be worth at maturity, if Tim invested $30,000? 9. Ryne received a demand loan of $32,000 on February 14, 2015 from his bank at 11% simple interest. On May 7, 2015, he made a repayment of $600 and on August 20, 2015, he made a repayment of $2500. He cleared the rest of the loan on November 18, 2015. Using the declining balance method, calculate the amount of the last payment. 10. A $4,500 loan is offered for 32 months at 4%2% p.a. compounded monthly. What is the maturity value of this loan? 11. Landmark Trust offers 5-year investment certificates at 7.5% p.a. compounded semi-annually. a) What is the value of a $2000 certificate at maturity? b) How much of the maturity value is interest? 12. What amount must be invested from April 1, 2013 until July 10, 2015 at 5.25% p.a. compounded quarterly, to reach a maturity value of $2,500? 13. An investment of $5,500 earns 4% per annum compounded quarterly for the 1st 2 years, and 5.25% per annum compounded semi-annually for the next 28 months. How much interest, in total, will be earned