Due Wednesday, October 11, 2000

Let K be the number made from the last (rightmost) two digits of your student number. For example, if your student number is 202167603 then your K = 03 = 3 (three). Or if your student number is 201087581 then your K = 81 (eighty one). Use K as indicated in the questions below.Make sure your name and student number are on your submitted assignment. Show your work on each question. You may use (at your option) a spreadsheet or other computer program to do #2. If so, include a computer printout of your work.

Your answer to each question should be in sentence form.

- An invoice for $14,542 has terms 5/5, n/(20+K). Find the
maximum simple interest rate at which the buyer can take advantage
of the discount. (Express your answer
as a percent to 4 decimals, e.g. 1.2345%)
- A demand loan of $10,000 is made on April 6, 2000 at 8.5%
simple interest per year. After (10+K) days, a payment of $3,000
is made. On August 6, 2000, the interest rate changes to 9.5%.
On October 9, 2000, a payment of $1000 is made.
On December 20, 2000 the balance of the loan is paid with a final
payment. Find the final payment and find the total interest paid
on the loan.
- A promissory note for $4,000 is signed on April 3, 2000. It
bears interest at 15% per year and is due on November 15, 2000.
The note is sold to a finance company (10+K) days after it was
signed and the company discounts the note at a rate of 18% simple
interest per year. How much does the company pay for the note? (In
this question, you should include the customary 3 days of grace.)
- A loan of $9,500 is made at 10% annual simple interest.
Three equal partial payments of $(2000+K) are made at the end
of 6 weeks, 8 weeks, and 10 weeks. The balance is repaid at the end
of 12 weeks. Assuming the Merchants' Rule is used, what is that
balance?
- Do the previous question again but use the Declining Balance
Method.
- In #3 above, assume the finance company discounted at a
*discount*rate of 19%. What would the company pay? - If the nominal annual interest rate is (4 + 0.1K)% compounded
quarterly, find (a) the effective annual rate and (b) the
equivalent nominal annual rate compounded daily. (Express your answers
as percents to 4 decimals, e.g. 1.2345%)
- A loan of $10,000 is to be repaid in full with interest at the
end of (48+K) months. Find the amount of interest paid if (a) 8%
simple interest per year is charged and (b) if the interest rate
is
*j*_{12}= 8%. - Suppose
*j*_{2}=*x*and the equivalent annual effective rate is*x*+0.0064. Find*x*. - On August 15, 2000, Ally deposited $5000 into an account
that earns interest at
*j*_{12}= 7%, payable into her account on the first of each month. On what date will she first be able to withdraw $10,000? (Assume that simple interest is used for fractions of a month.)

File translated from T

On 25 Sep 2000, 16:42.