Question

Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Assume simple interest and discount. Round to the nearest cent, if necessary. 2) A loan of $180,000.00 at 7.5% made on June 1 and due on August 21. A) $2,995.89 B) $3,037.50 C) $3,136.13 D) $3,375.00

none of my answes match the answers given for these questions.

Answer 1

Solution:

Solving first two question(i.e Q2 & 4) as per Chegg's guidelines:

2.Calculation of amount of simple interest:

No. of days between June 1 to August 21=81 days

Rate of interest=7.5% or 0.075

Simple Interest=Amount of loan*Rate of interest*No. of days/365

=$180,000*0.075*81/365

=$2,995.89

Thus correct answer is option A.

4.Calculation of Price of bond and interest rate

Price of bond=Fair value-Discount

=$9000-($9000*2.02%)

=$9000-$181.80

=$8818.20

Interest rate=(Discount/Price)*100

=[$181.80/$8818.20]*100

=2.062%

Thus,correct answer is Option D