The Mathematics of Money

22 Chapter 1 Simple Interest Now, suppose that you double the left side, turning $1,000 into $2,000. This would make the left si ...

Copyright © 2008, The McGraw-Hill Companies, Inc. (^4) Actually this is not quite true. Zero divided by zero is not one, it is u ...

24 Chapter 1 Simple Interest Most Texas Instruments calculators have an “Ans” feature that recalls the result of the last calcul ...

Copyright © 2008, The McGraw-Hill Companies, Inc. We can also check this result: I = PRT I = ($500)(0.20)(90/360) I = $25 Exampl ...

26 Chapter 1 Simple Interest If we multiply both sides of this equation by 12, we get: 12(years) = 12(months) ___________ 12 and ...

Copyright © 2008, The McGraw-Hill Companies, Inc. reason why we need to state the term in months, we will usually convert to day ...

28 Chapter 1 Simple Interest EXERCISES 1.3 A. Finding Principal Find the principal for a loan if the term is 2 years, the simpl ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Exercises 1.3 29 I deposited $4,257.09 in a certifi cate of deposit, and 83 d ...

30 Chapter 1 Simple Interest Justine paid $40.36 simple interest on a 45 days loan of $1,200. Interest was calculated using ban ...

a. Bill loaned Ted $95 for a month. Ted paid $5 interest for the loan. b. Kendra borrowed $8,350 for 5 years and paid $10,000 si ...

32 Chapter 1 Simple Interest On the day that the loan is to be repaid, we say the loan comes due and its note matures. The date ...

Copyright © 2008, The McGraw-Hill Companies, Inc. October 13. So the note does contain enough information for us to be able to d ...

34 Chapter 1 Simple Interest Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. 1 1326091121 152 182 213 244 274 305 335 ...

Copyright © 2008, The McGraw-Hill Companies, Inc. September 23, we would add 243
23  266. Note that these dates agree with wh ...

36 Chapter 1 Simple Interest Example 1.4.4 Find the number of days (a) between January 6, 2004, and May 1, 2004, and (b) between ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Finding Terms across Two or More Calendar Years In all of the previous problem ...

38 Chapter 1 Simple Interest still fall in 2006, since there aren’t that many days left in the year. It’s not surprising, then, ...

Copyright © 2008, The McGraw-Hill Companies, Inc. A. Promissory Notes For each of the following promissory notes or situations, ...

40 Chapter 1 Simple Interest Serena signed a promissory note on April 1, 2007. The maturity date was June 19, 2007. How many da ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Exercises 1.4 41 F. Finding and Using Terms In each of the following exercises ...