Question

$14,000 is invested for 7 years at an annual simple interest rate of 11%.

(a) How much interest will be earned?
$  

(b) What is the future value of the investment at the end of the 7 years?
$

2.–/1 points

My NotesAsk Your Teacher

$10,000 is invested for 6 months at an annual simple interest rate of 3%.

(a) How much interest will be earned?
$  

(b) What is the future value of the investment after 6 months?
$

If you borrow $900 for 6 months at 6% annual simple interest, how much must you repay at the end of the 6 months?
$

(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9730. What annual simple interest rate does this earn? (Round your answer to one decimal place.)
%

(b) If the bank charges a fee of $30 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.)
%

If $5000 is invested at 8% annual simple interest, how long does it take to be worth $7800?
yr

My NotesAsk Your Teacher

A retailer owes a wholesaler $300,000 due in 45 days. If the payment is 15 days late, there is a 1% penalty charge. The retailer can get a 45-day certificate of deposit (CD) earning 8% per year simple interest or a 60-day certificate earning 9% per year simple interest. Is it better to take the 45-day certificate and pay on time or to take the 60-day certificate and pay late with the penalty?

The 45-day certificate is better.The 60-day certificate is better.    

They are equivalent.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.