Simple Interest By: Ms. Naira

1. You borrow $14,500. 00 to purchase a new car, if the rate is 8 1. You borrow $14,500.00 to purchase a new car, if the rate is 8.5% for a 6 year period of time, how much interest do you pay on this loan? What is the actual cost of this new car? $14,500 $8,265 We pay $2,565. The actual cost of the car is $22,765

2. Calculate the amount of interest earned on $8700 2. Calculate the amount of interest earned on $8700.00 savings when earning 3.25% per annum for three years. $848.25 are earned in 3 years which gives me a total of $9,548.25

3. What's the Interest paid on a short term loan of $890. 00 at 12 3. What's the Interest paid on a short term loan of $890.00 at 12.5% for 261 Days? (There are 365 days in a year, here time would be a fraction) In 261 days (about 9 months) we will pay a total of $969.55 to the lender (bank).

4. What amount of principal will earn interest of $175. 50 at 6 4. What amount of principal will earn interest of $175.50 at 6.5% in 8 months? (there are 12 months in a year, here time will be a fraction)

5. What Sum of Money Can you Invest for 300 Days at 5. 5% to earn $93 5. What Sum of Money Can you Invest for 300 Days at 5.5% to earn $93.80? (time will be a fraction)

6. What Annual Rate of Interest Is Needed for $2100. 00 to earn $122 6. What Annual Rate of Interest Is Needed for $2100.00 to earn $122.50 in 14 Months? (time will be a fraction)