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CHAPTER 2Interest and Money-Time RelationshipSolved Supplementary ProblemsProblem 2.1What is the annual rate of interest ifܲ265is earned in four months on an investment ofܲ15,000?Problem 2.2A loan of ܲ2, 000is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest of 20%. What future amount is due at the end of the loan period?
Problem 2.3If you borrow money from your friend with simple interest of 12%, find the present worth ofܲ20, 000, which is due at the end of nine months.Problem 2.4Determine the exact simple interest on ܲ5,000for the period from Jan.15 to Nov.28, 1992, if the rate of interest is 22%.
Problem 2.5A man wishes his son to receive ܲ200, 000ten years from now. What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years?