Question: PART 1 Solve the following simple interest problems 6 Marks a) How much simple interest is gained on a credit card charge of $500 =2

PART 1 Solve the following simple interest problems 6 Marks a) How much simple interest is gained on a credit card charge of $500 =2 4100 with an interest rate of 2%/a over a period of 219 days? noose 2 of 3 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? PART 2 Solve the following compound interest problems 8 Marks 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 oose 2 of 3 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

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