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If you want to earn 2% annual simple interest on an investment, how much should you pay for a note that will be worth $18,500 in 10 months? (Round your answer to two decimal places.)

If you want to earn 2% annual simple interest on an investment, how much should you pay for a note that will be worth $18,500 in 10 months? (Round your answer to two decimal places.)

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section7.7: Simple And Compound Interest
Problem 20E
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If you want to earn 2% annual simple interest on an investment, how much should you pay for a note that will be worth $18,500 in 10 months? (Round your answer to two decimal places.) $
Transcribed Image Text:If you want to earn 2% annual simple interest on an investment, how much should you pay for a note that will be worth $18,500 in 10 months? (Round your answer to two decimal places.) $
At a payday lending company, a loan of $500 will accrue interest as follows: Loan Duration 1 day 14 days 30 days Interest Owed $2.54 $35.36 $70.22 (a) Using the interest owed on a 1-day loan, find the equivalent annual simple interest rate for the loan. Use a 365-day year. Round answers to two decimal places. (b) Instead of borrowing from a payday lender, $500 is borrowed from a bank charging 7% simple interest. Find the amount of interest owed after 30 days. Use a 365-day year. $ %
Transcribed Image Text:At a payday lending company, a loan of $500 will accrue interest as follows: Loan Duration 1 day 14 days 30 days Interest Owed $2.54 $35.36 $70.22 (a) Using the interest owed on a 1-day loan, find the equivalent annual simple interest rate for the loan. Use a 365-day year. Round answers to two decimal places. (b) Instead of borrowing from a payday lender, $500 is borrowed from a bank charging 7% simple interest. Find the amount of interest owed after 30 days. Use a 365-day year. $ %
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