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7.
Keith Wendell plans to borrow $5,810.
He has decided on a term of 95 days at 8% interest.
He has a choice of two lenders.
One calculates interest using a 360-day year and the other uses a 365-day year.
Find the amount of interest Wendell will save by using the lender with the 365-day year.


$1.54

$1.67

$1.63

$1.68
8.
Jake Winters plans to invest $7,400.
Find the interest rate required for the fund to grow to $7,844 in 8 months.


9%

5.7 %

8.5%

6%

Respuesta :

talkingturkey
Given:
Principal : $5,810
term: 95 days
rate: 8%

365/360 days

Interest = Principal * rate * term
Interest = 5,810 * 0.08 * 95/360
Interest = 122.66

Interest = 5,810 * 0.08 * 95/365
Interest = 120.98

122.66 - 120.98 = 1.68

Wendell will save $1.68 in interest if he chose the lender that uses 365-day year.


Given:
Principal - $7,400
Future Value - 7,844
term - 8 months
interest rate - x

Interest = 7844 - 7400 = 444

Interest = Principal * rate * term
444 = 7,400 * rate * 8/12
444 = 4,933.33 * rate
444 / 4,933.33 = rate
0.09 = rate

The interest rate required for the fund to grow to $7,844 in 8 months is 9%


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