MM 255-A man took out a $43,000 construction

Subject: Mathematics / Statistics
Question:1.A man took out a ?$43,000 construction loan to remodel a house. The loan rate is8.3?% simple interest per year to be repaid insixmonths. How much is paid? back?
A man pays back ?$___________.

2.Linda Davis agreed to lend money to Alex Luciano at a special interest rate of5?% per? year, on the condition that he borrow enough that he would pay her ?$550

in interest over a period of 3 years. What was the minimum amount Alex could? borrow?

The minimum amount Alex could borrow was ?$_____________.

?(Round to the nearest cent as? needed.)

3.Mr. Smith borrowed ?$27,000 to purchase stock for his baseball card shop. He repaid the simple interest loan after five years. He paid interest of ?$6,630. What was the interest? rate?

The interest rate on the loan was __________.

?(Type an integer or decimal rounded to two decimal places as? needed.)

4Find the exact interest on a loan of ?$8,000 at8?% annually for80 days.


?(Round to the nearest cent as? needed.)

5.A loan made on March7is due September5of the following year. Find the exact time for the loan in a? non-leap year and a leap year.

Click the icon to view the table of the sequential numbers for dates of the year.

The exact time in a? non-leap year is __________ days.

The exact time in a leap year is ______________days.

6.Raul Fletes borrowed ?$7,500 on a120?-day note that required ordinary interest at14.56?%. Raul paid ?$3,750 on the note on the20th day. How much interest did he save by making the partial? payment? The interest saved is ?$___________

.?(Round to the nearest cent as? needed.)

7.A man makes a simple discount note with a face value of ?$2,600?, a term of180 ?days, anda9?% discount rate. Find the discount.? (Use the? banker’s rule.)

The discount is ?$_________

.?(Round to the nearest dollar as? needed.)

8.Find the discount and proceeds on a ?$3,220 ?face-value note fornine months if the discount rate is9.3?%. ?(Use the? banker’s rule.)

The discount is ?$______________

.?(Round to the nearest cent as? needed.)

Question:Question 9: (10 Points)

You decide to take out a loan for $6,000, at 7% yearly interest on the date October 14. If you repay the loan on December 31st (at the end of the current year).

a) Exact time (days) of loan: __________

b) Using ordinary interest, calculate the interest and total owed.

c) Using exact interest, calculate the interest and total owed.

Question 10: (10 Points)

You decide to take out an ordinary interest loan of $35,000 at 4%, on a 90 day note.

a) After 45 days of accruing interest, you make a payment of $15,000 on the loan. What is your new principal? Explain how you got the answer.

b) How much in total did you pay at the end of the loan, assuming you made that 45th day payment? How does this differ from how much you would have paid overall had you not made a payment of $15,000 after 45 days?

Question 11: (10 Points)

Find the bank discount and proceeds using ordinary interest on a promissory note made to Leslie Smith for $13,000 at 7% annual simple interest from July 15 to September 15 for this year. Use the steps below to find your answers.

a) Observe this situation describes a simple discount note. Explain the difference between a simple interest note and a simple discount note.

b) Exact time (days) of note: __________

c) What is the bank discount?

d) What are the proceeds that Leslie Smith receives?

e) What is the amount Leslie Smith repays?

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