Question

Simple Interest USE A 360 DAY YEAR

Calculate the simple interest amount and the future value using the simple interest formula.

                                                                                 365 day year

Principal	Interest Rate	Time	Simple Interest Amount	Future Value
$ 18,000	4.5%	18 months
$ 21,000	5%	1.75 Years
$ 18,000	7.25%	9 months
$ 1,000	8%	93 days
$ 585	9%	193 days
$ 1,200	12%	187 days

1) Leslie Hart borrowed $15,000 to pay for her child’s education. Leslie must repay the loan at the end of 9 months in one payment with 5 ½ % interest. How much interest must Leslie pay? What is the Future Value of this loan? 2) On September 12, Jody Jansen went to Sunshine Bank to borrow $2300 at 9% interest. Jody plans to repay the loan in 137 days. How much interest will Jody owe and what is the future value of this loan? 3) Gordon Rosel went to his bank to find out how long it will take for $1200 to increase in value to $1650 at 8% simple interest. Please round your answer to the nearest tenth. 4) Anne Hopkins borrowed $ 60,000. She must repay the loan at the end of 8 years in one payment with 5 ½ % interest. What will the amount of her payment be? How much of that payment is for interest?