Using the simple interest formula, determine the number of days until $964.00 will earn $32.58 interest at 5% p.a. The number of days required is (Round up the final answer to the nearest day as needed. Round all intermediate values to six decimal places as needed.) ID: 7.2.9a 19. On January 18, 2006, Low Rider Automotive established a line of credit at its bank, with interest at 9.4% p.a. This line of credit was used to purchase $5000 of Inventory and supplies. Low Rider paid $5019.31 to satisfy the incurred debt. On what date did Low Rider Automotive honour the line of credit? The debt was due on (1) (1) October 17, 2006. April 27, 2006 February 2, 2006 August 31, 2006 September 18, 2007 ID: 7.2.18 20. On June 25, 2007, a company invested $38,610.00 in a short-term investment of 302 days. An investment of this length earns 5.4% p.a. Using the future value formula, S=P(1+r), determine how much the investment will be worth at maturity The future value is $ (Round the final answer to the nearest cont as needed. Round all intermediate values to six decimal places as needed. one year? 1/2/2017 Homework 2 21. Prairie Grains Cooperative wants to invest $47.000 in a short-term deposit. The bank offers 2.8% interest for a one-year term and 2.7% for a six-month term. (a) How much would Prairie Grains receive if the $47,000 is invested for one year? (b) How much would Prairie Grains receive at the end of one year if the $47.000 is invested for six months and then the principal and Interest earned Is reinvested for another six months? (c) What would the one-year rate have to be to yield the same amount of interest as the investment described in port (b? (a) After one year, Prairie Grains will have $ (Round the final answer to the nearest cont as needed. Round all intermediate values to six decimal places as needed.) (b) One year after the initial investment, Prairie Grains will have $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The one-year rate to yield the same amount of interest as the investment described in part(b) is (Round the final answer to three decimal places as needed. Round all intermediate values to six decimal places as needed.) ID: 7.3e 22. The lawyer for a credit union member has sent a cheque for $2351.86 in full settlement of the member's loan balance including interest at 8-% for 5 months. How much of the payment is interest? The amount of the payment that is interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) ID: 7.4.7 23 Payments of $1750 and $1600 are due four months from now and nine months from now respectively. What single payment is required to pay off the two scheduled payments today if interest is 9% and the focal date is today? The amount of the payment is $ (Round the final answer to the nearest cont as needed. Round all intermediate values to six decimal places as needed.) 24. Scheduled payments of $800 due two months ago and $1200 due in one month we to be repaid by a payment of $1000 today and the balance in three months. What is the amout of the final payment of Interest is 7.70% and the focal date is one month from now? The amount of the payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) ID: Review Exercise 20 Dan borrowed $1266.00 today and is to repay the loan in two equal payments. The first payment is in five months, and the second payment is in eight months. If interest is 6% per annum on the loan, what is the size of the equal payments? Use today as the focal date. The size of the equal payments is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) ID: 7.5.9
