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Unformatted text preview: Unit 4: Simple Interest - Project You must show your work on all problems. You may type your answer right into this document. Total points for project: 45 points. Projects must be submitted as a Microsoft Word document and uploaded to the Dropbox for Unit 1 . All Projects are due by Tuesday at 11:59 PM ET of the assigned Unit. NOTE: Project problems should not be posted to the Discussion threads. Questions on the project problems should be addressed to the instructor by sending an email or by attending office hours. Part I. Basic Computations 1. To buy a laptop, Susan receives a $2000 loan at a 6.5% annual interest rate on January 10. The loan is due May 15. The year is not a leap year. Round the answers to the nearest cent (nearest hundredths) a) Find the ordinary interest that Susan will pay for the loan. (5 Points) Answer: 17 weeks and 1 day is 17x7+1=120, I=PRT, I=$2000x.065x(120/360)= $43.33 b) Find the maturity value, MV for the loan. (5 Points) Answer: MV=P(1+RxT) $2000[1+.065x(120/360)]=$2000(1.02167)= $2043.33 2. Maryam pays $3000 on the 30 th day of a $7,000, 120-day, and 8% loan. a. What is the adjusted principal after the partial payment is made if ordinary interest is applied? (5 points) Answer: Including interest so far at 30 days. I=PRT 7000x.08x(30/360)= $46.67=I , 3000-46.67= $2953.33 goes toward paying off $7000. 7000-2953.22= goes toward paying off $7000....
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- Spring '11