MA170wk2solns - MA170 Week 2 Report: Amount Functions;...

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Discounted Value at Simple Interest Name: _______SOLUTIONS___________ Lab: Fall 2010 1. [5 marks ] of each month, starting October 1st. Jacob pays $1500 towards the loan on October 5th, $2000 on November17th and $1500 on December 1st. The interest rate is 14% from September 17th until October 5th and then increases to 15% on October 6th and remains at that rate until the debt is repaid. (a) Calculate the interest payments for each month, using the table below to organize your work. Be sure to include the total interest paid for each month in the right-most column. Interest period # of days Balance Rate Interest Interest on the 1 st of the month Sept 17-Oct 1 14 $5000 14% 5000 (0 : 14) 14 365 ± : = 26 : 85 26 : 85 Oct. 1-Oct 5 4 $5000 14% 5000 (0 : 14) 4 365 ± : = 7 : 67 Oct. 5-Nov.1 27 $3500 15% 3500 (0 : 15) 27 365 ± : = 38 : 84 7 : 67 + 38 : 84 = 46 : 51 Nov 1-Nov 17 16 $3500 15% 3500 (0 : 15) 16 365 ± : = 23 : 01 Nov. 17-Dec 1 14 $1500 15% 1500 (0 : 15) 14 365 ± : = 8
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MA170wk2solns - MA170 Week 2 Report: Amount Functions;...

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