Module #4 Hand-In Assignment 1. You deposit S1000 into a bank account that pays 10% simple. How much interest would you earn if: a. You left the money in for 6 years. b. You left the money in for 9 months. c. Your deposit was on April 6 and you withdrew the money on December 23 the same year d. You made a deposit October 28, and withdrew the money September 21, the next year. 2. 18 months ago you purchased a bond that paid 7.5% simple interest. You cashed in the bond and received the principal plus $337.50 in interest. Find the principal. 3. On your 65th birthday you eagerly cash in one of your RRSP's. You receive a total of $4295. Your original investment was $3000 and the RRSP paid interest at 7% simple. For how many months was your money in the RRSP? 4. On December 16 you withdraw your entire Christmas fund of $2098.63 from your account. You deposited S2000 on February 19 of the same year (not a leap year). What simple interest rate was paid? 5. You have decided to start a new car fund. You deposit $6000 into an account paying 10% simple interest. How much money will you have in 50 months? 6. On December 31 you repaid a loan to the Hammerhead Finance and Loan Company. You repaid $6000 which was principal and interest on a five year loan at 10% simple. How much money did you borrow? 7. For your first job after graduation you have decided to accept a contract position. The manager has offered to pay you $30,000 at the end of the first year and $35,000 at the end of the second year or to pay you $22,000 now, $20,000 at the end of the first year and S20,000 at the end of the second year. Which option is better and by how much, if interest is 10% simple? Use today as your focal date. 8. Today, you take out a 55000 loan at 10% simple interest, which is to be repaid with two equal payments at the end of the first year and at the end of the second year. Find the size of the payments using today as your focal date.) 9. You have two equal payments left on your car loan. The first payment is due in six months and the second at the end of the year. You are experiencing cash flow problems and the bank has agreed to let you pay a single payment of S1500 at the end of 18 months to retire your debt. Find the size of the original remaining payments using 18 months as your focal date and 12% as the simple interest rate