Question

If a lender makes a simple loan of $400 for 4 years and charges 3%, then the amount that the lender receive at maturity is $ (Round your response to the nearest two decimal place) If a lender makes a simple loan of $3000 for one year and charges $70 interest, then the simple interest rate on that loan is %. (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is O A. 5.0% O B. 65% OC. 6.5% OD. 6.0%

Answer 1

Giren & Principail = $400, Time: U yenis Rake of laberkat = 3%. then the maturity amount : 4 = p Citot) where A Stands for Amount of Maturity 'P' stand for principaul Amout & Stands for Rate of Interest 't stands for Time in years. A - $400 (1+0.03% 4) A = $400 (1 +0.12) A = $400 (1.12) A= $448 then the maturity amount is $448

Sol (2) Given i Principent Amount = $3,000 Time = 1 year Interest Change = $70 formula for Carl calating Simpele luterest is - I = Pati rn ere I stands for Interest Amount P Stand, for principal Amount 'g Stands for Rate of lufterest 't Stands for Time in year's Î = pot $ To = $3000 X 7 X 1 $70 = $ 3000 g = $70 $3.000 r = 0.0233 Rate of interest (8) In percentage = 2.33% Rate of Interest = 2% (In nearest whole Number)

Sol (3) Giveno- Amount (A) = $106.50, Timelt) = 1 year Principal (P) = $100 Aap Citrt) Where 'A Stands for Amount of maturity. - 'P' Stands for Principal Amount 'g' Stands for Rate of Interest 't Stand's for Time in year's $106.50 = $100 (1+8x1) $ 106.50 = $100 (1 + r) litr $106.50 $100 1.065 = 1tr g = 1.065-1 g = 0.065 Rate of Interest (8) = 6.5% Option c' is Correct