The Mathematics of Money

42 Chapter 1 Simple Interest On December 21, 2007, I signed up for a 100-day trial membership to a wholesale buying club. On wh ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Exercises 1.4 43 Determine the maturity value for a $3,000 note signed on Jul ...

44 Chapter 1 Simple Interest 1.5 Nonannual Interest Rates (Optional) Back in Section 1.1, we noted that, unless it is clearly st ...

Copyright © 2008, The McGraw-Hill Companies, Inc. nominal can be ignored; we’ll discuss what that means in Chapter 3.) On the st ...

46 Chapter 1 Simple Interest Example 1.5.6 Convert an annual simple interest rate of 9.75% into a daily rate. Following our defa ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Exercises 1.5 47 B. Converting Nonannual to Annual Rates Express each of the ...

48 Chapter 1 Simple Interest Find the total interest due for an 8-month loan of $10,857 if the simple interest rate is 1¼% per ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 49 CHAPTER 1 SUMMARY Topic Key Ideas, Formulas, and Techniques Examples The Co ...

50 Chapter 1 Simple Interest Topic Key Ideas, Formulas, and Techniques Examples Finding the Term of a Note from Its Dates (withi ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 51 CHAPTER 1 EXERCISES The following exercises are a mixture of problems from ...

52 Chapter 1 Simple Interest Suppose that I loan someone $5,000 for 90 days. I will be repaid $5,125 when the loan comes due. F ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Carl loaned Jerry $500 on February 12, 2008, and Jerry repaid a total of $515 ...

54 Chapter 1 Simple Interest Qisun borrowed $4,818 at a 5% simple interest rate on September 5, 2005. When did the total amount ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 55 NOTES ...

56 Learning Objectives LO 1 Understand the concept of simple discount, and recognize situations where it may be used. LO 2 Calcu ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Jennifer knows she will be getting a paycheck for $500 at the end of the week, ...

loan is more apt to be thought of as the maturity value. And so: Definition 2.1.2 The face value of a discount note is its matur ...

Copyright © 2008, The McGraw-Hill Companies, Inc. The Simple Discount Formula We can arrive at a formula for simple discount by ...

60 Chapter 2 Simple Discount Example 2.1.3 A 3-month note is discounted by $28.75. The simple discount rate is 5 ¾%. Determine t ...

EXERCISES 2.1 March 7 is the 65th day of the year, so the note matures on the 66
70  136th day of the year. The state aid wil ...