How much simple interest is gained on a credit card charge of $500 with an interest...

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How much simple interest is gained on a credit card charge of $500 with an interest rate of 2%/a over a period of 219 days? b) $420 of simple interest was earned after 91 weeks on an interest rate of 5%/a. How much was originally invested? c) What is the interest rate if $200 simple interest is earned on a loan of $2525 over 21 months? Solve the following compound interest problems a) Alice wants to buy a gold watch for the white rabbit for his centennial birthday, which is 28 years away. How much would she need to invest today if she needs $40000 for the watch and she invested her money into an account that pays 7.5%/a compounded quarterly? b) Peter decided to invest his inheritance of $4000 into an account with an interest rate of 2.6%/a compounded weekly. How much money will he have in 18 years? c) Carol plans ahead and wants to be able to afford a new boat that will approximately cost $25000. How much should she invest today if the account she chooses has an interest rate of 6%/a compounded monthly and she invests her money for 20 years? How much simple interest is gained on a credit card charge of $500 with an interest rate of 2%/a over a period of 219 days? b) $420 of simple interest was earned after 91 weeks on an interest rate of 5%/a. How much was originally invested? c) What is the interest rate if $200 simple interest is earned on a loan of $2525 over 21 months? Solve the following compound interest problems a) Alice wants to buy a gold watch for the white rabbit for his centennial birthday, which is 28 years away. How much would she need to invest today if she needs $40000 for the watch and she invested her money into an account that pays 7.5%/a compounded quarterly? b) Peter decided to invest his inheritance of $4000 into an account with an interest rate of 2.6%/a compounded weekly. How much money will he have in 18 years? c) Carol plans ahead and wants to be able to afford a new boat that will approximately cost $25000. How much should she invest today if the account she chooses has an interest rate of 6%/a compounded monthly and she invests her money for 20 years?

Answer rating: 100% (QA)

a To calculate simple interest we can use the formula Simple Interest Principal Amount Interest Rate Time Given Principal Amount 500 Interest Rate 2 p... View the full answer