373chapter1section4

373chapter1section4 - 7.5 At the end of t years Alice’s...

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Chapter 1, Section 4 11. Ben invests 1500 in an account earning simple interest of 5%. a. Calculate the amount of interest earned in the first year. b. Calculate the amount of interest earned in the 20th year. c. Calculate the amount that Ben will have at the end of 20 years. 12. Book Problem 1.4, Number 3 13. Tori borrows 1000 from Grace. Two years later, Tori repays the loan with a payment of 1200. Assuming that Tori is paying simple interest, calculate the annual simple interest rate that she is paying on the loan. 14. Katie Rose borrows K to buy a new car. The loan has simple interest of 8%. At the end of 5 years, Katie Rose repays the loan with a payment of 28,294. Determine K. 15. Alice invests 500 in an account earning simple interest at a rate of
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Unformatted text preview: 7.5%. At the end of t years, Alice’s investment will have doubled. Determine t. (Note: t does not need to be an integer.) 16. Taylor lends Nick 1000 at a simple interest rate of 20%. What will be the effective interest rate on the loan during year 10. 17. Emily invests 1000 at a simple rate of interest S. Emily will earn an effective rate of interest of 2% in the 31st year of her investment. How much will Emily have at the end of 40 years? 18. Rawan invests in fund earning simple interest of 10%. Her effective interest rate for the nth year (in) is 5%. Calculate n. Answer: 11. a.75 b. 75 c.3000 12. 6% 13. 10% 14. 20,210 15. 13.3333 16. 7.1429% 17. 3000 18. 11...
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373chapter1section4 - 7.5 At the end of t years Alice’s...

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