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OUTPUT

IN
MATHEMATICS
IN THE MODERN
World

SUBMITTED BY: maria Stephany ariz

SUBMITTED TO: mrs. Giena odicta

EXERSICE:
SIMPLE INTEREST

Solve the following word problems. Round to the nearest cent when necessary.

Questions:
1. On april 12 Michelle Lizardo barrowed 5000 from her credit union at
9% for 80 days.

a) What is the amount of interest on the loan?

b) What is the maturity value of the loan?

c) What is the maturity date of yhe loan?

2. What is the maturity value of a 60,000 loan for 100 days at 12.2% interest
using the exact interest method.

3. Central auto parts barrowed 350,000 at 9% interest on july 19 for 120


days.

a) If the bank uses the ordinary interest method, what is the amount of
interest on the loan?

b) What is the maturity date?


4. Emil Benson missed an income tax payment of 9000. The internal
revenue services charges a 13% simple interest penalty calculated by the
exact interest method. If the tax was due on april 15 but was paid on
august 19. What was the amount of the penalty charge?

5. At the city National Credit Union a 7%, 8000 loan for 180 days had
interest charges of interest did city National use, ordinary or exact?

6. Kyle Rohrs borrowed $1,080 on June 16 at 9.2% exact interest from


the Wells Fargo Bank. On August 10, Kyle repaid the loan. How much
interest did he pay?

7. $10,000 is borrowed for 140 days at an 8% interest rate. Calculate the


maturity value by the exact method and by the ordinary method. Which
method yields the greater maturity value? Who benefits from using the
ordinary method rather than the exact method, the borrower or the
lender?
Exercises:
COMPOUND INTEREST
Questions:
1. Calculate the compound amount when $8000 is deposited in an

account earning 8% interest,compounded quarterly, for 5 years.


2. Calculate the compound amount when $3000 is deposited in an
account earning 10% interest, compounded semiannually, for 3 years.

3. If you leave $2500 in an account earning 9% interest, compounded


daily, how much money will be in the account after 4 years?

4. What is the compound amount when $1500 is deposited in an


account earning an interest rate of 6%, compounded monthly, for
2 years?

5. What is the future value of $4000 earning 6% interest,


compounded monthly, for 6 years?

6. Calculate the future value of $8000 earning 8% interest,


compounded quarterly, for 10 years.
7. $15,000 is deposited for 4 years in an account earning 8%
interest.
a. Calculate the future value of the investment if interest is
compounded semiannually.

b. Calculate the future value if interest is compounded quarterly.

c. How much greater is the future value of the investment when


the interest is compounded quarterly?

8. Future Value $25,000 is deposited for 3 years in an account


earning 6% interest.
a. Calculate the future value of the investment if interest is
compounded annually.
b. Calculate the future value if interest is compounded
semiannually.

c. How much greater is the future value of the investment


when the interest is compounded semiannually?

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