ch 9 questions 1-19

Name HOMEWORK ASSIGNMENT: CHAPTER 9 Class Unit 9.1 Computing simple interest and maturity value ANSWERS For Problems 1-7, consider a loan in which you borrow $5,000 on March 10 1. for 6 months at 8% interest. 1. What is the principal amount? N What is the term? w (3. What is the maturity date? 4. What is the dollar amount of interest? 5. What is the maturity value? 5 . . If you borrowed the money for only 4 months, what is the total amount you would owe? 6. 7. If you borrowed the money for 15 months, what is the total amount you 7 . would owe? In the formula M = P + 1, I stands for the dollar amount of interest. (T 8 . 8. or F 9. In the simple interest formula I = PRT, T stands for time, in days. (T or F) 10 . For Problems 10-12, calculate the number of days for which interest should be charged. 11. Date of loan Date of payment Number of days 12. 10. Feb. 11, 2019 Sep. 3, 2019 13. 11. July 8, 2021 Mar. 12, 2022 14. 12. Dec. 22, 2019 Mar. 15, 2020 (leap year) 15. For Problems 13-15, calculate the maturity date. 16. Date of loan Term Maturity date 17. 13. May 18, 2019 90 days 14. Sep. 8, 2021 180 days 18 . 15. Jan. 22, 2020 (leap year) 75 days 19. For Problems 16 and 17, we will calculate interest on a 12.5% 120-day $8,000 loan. 16. Calculate interest, assuming the lender uses a 360-day year. - 17, Calculate interest, assuming the lender uses a 365-day year. 18. The Truth in Lending Act applies to business loans. (T or F) 19. The Truth in Lending Act requires that lenders disclose the APR, accurate to - of one percent. (T or F) Chapter 9 33