Question

4.Award: 10.00 points Robert borrows $1000 for 8 months from a lender who charges a 4.5% simple discount rate a) How much money does Robert receive? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Robert receive b) What size loan should Robert ask for in order to receive $1000 cash? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Size of the loan c) What is the true rate of simple interest that Robert is being charged? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Simple interest rate Award: 10.00 points A debt of $1200 is to be paid off by payments of S500 in 45 days, $300 in 100 days, and a final payment of $436.92 Interest is at r-11% and the Merchant's Rule was used to calculate the final payment in how many days should the final payment be made? (Do not round intermediate calculations. Round your answer to the nearest whole number.) days Award: 10.00 points You borrow $1000 now and $2000 in 4 months. You agree to pay SX in 6 months and S2X in 8 months (from now). Determine X using a focal date 8 months from now a) at simple interest rate r: 8%; (Do not round intermediate calculations. Round your answer to 2 decimal places.) b) at simple discount rate d-896 (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Since these are three different questions so I will answer only the first one:

Borrowed amount = $1000

duration 8 months

discount rate = 4.5%

4.a) Discount = $1000 x 4.5% x (8/12)

Discount = $30

Robert receives ($1000 - $30) = $970.

4.b) We can back solve using the above equation in order to find the $1000 amount (X) after discount.

(X - Discount) = $1000

X = 1000 +Discount

X = 1000 + (30.96)

X = 1030.96 = $1031 (Rounded off)

4.c) To find the simple interest we need to use the formula

Interest = Principal x annual rate x tenure

$30 = $1000 x Annual rate x (8/12)

Annual rate = $30 / (666.67) = 4.45%.