(a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to repay the debt in 2 years at 7% per annum, simple interest. How much should Heather repay her grandmother? (b) How much must Jason deposit in a special account paying interest at the rate of 9.5% to receive $75.21 in interest after 6 months? (c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate of yearly intesest did the investment pay?
(a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to repay the debt in 2 years at 7% per annum, simple interest. How much should Heather repay her grandmother? (b) How much must Jason deposit in a special account paying interest at the rate of 9.5% to receive $75.21 in interest after 6 months? (c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate of yearly intesest did the investment pay?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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Transcribed Image Text:(a) Heather borrowed $5000 from her grandmother as a down payment on her first
car. She promised to repay the debt in 2 years at 7% per annum, simple interest.
How much should Heather repay her grandmother?
(b) How much must Jason deposit in a special account paying interest at the rate of
9.5% to receive $75.21 in interest after 6 months?
(c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate of
yearly intesest did the investment pay?
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