Question

QUESTION 9 the total amount he repaid. ith simple interest of 9%. Fin Daniel borrowed $4.900 from his mother to buy a car. He repaid her after 7 months a. $5,157.25 b $5,120.50 O$257.25 d.$5,341.00 QUESTION 10 Cameron has money in an account at 5% interest, compounded monthly. To the nearest year, how long will it take for his money to triple? O a, 21 years OC. 20 years Od.22 years

Answer 1

9.

Simple interest=Principal*Interest Rate*Time period

=4900*9%*(7/12)

=$257.25

Hence future value=Simple interest+Principal

=$257.25+4900

=$5157.25

10.

We use the formula:
A=P(1+r/12)^12n
where
A=future value($3x)
P=present value($x say)
r=rate of interest
n=time period.

3x=x*(1+0.05/12)^12n

3=1.004167^12n

Taking log on both sides;

n=1/12[log 3/log 1.004167]

=22 years(Approx).