Select an appropriate piece of equipment and calculation method to complete these calculations:

1. Calculate the simple interest amounts by completing the following table:

Principal	Interest rate	Interest amount
$25,000	15.5%
$8,500	7.5%
$79,500	11%

2. You have borrowed $18,000 for 4 months. The interest rate is 12.5% per annum (simple interest). Calculate how much interest you will have to pay over the 4 month period. Show your workings.

3. You have borrowed $360,000 for 3 years. The interest rate charged is 3.5% the interest compounds at the end of each year. You make no repayments on this loan over the 3 years. Calculate the total amount owed at the end of 3 years by competing the following table. Round your answers to the nearest whole dollar.

Principal Year 1 $	Interest Charge Year 1 $	Total amount owning at the end of year 1 $	Interest charge year 2 $	Total amount owning at the end of year 2 $	Interest charge year 3 $	Total amount owning at the end of year 3 $
360,000

4. Which piece of equipment is the most appropriate to perform the above calculations

Answer rating: 100% (QA)

Answer a The simple interest amount by completing the following tabl... View the full answer