Chapter 6 Summary and Review 587- INVESTMENTS Find the simple interest earned
on $6,000 invested at 8% for 2 years. Use the
following table to organize your work.
REVIEW EXERCISES
Pr t I- INVESTMENT ACCOUNTS If $24,000 is invested
at a simple interest rate of 4.5% for 3 years, what
will be the total amount of money in the investment
account at the end of the term? - EMERGENCY LOANS A teacher’s credit union
loaned a client $2,750 at a simple interest rate of
11% so that he could pay an overdue medical bill.
How much interest does the client pay if the loan
must be paid back in 3 months? - CODE VIOLATIONS A business was ordered to
correct safety code violations in a production plant.
To pay for the needed corrections, the company
borrowed $10,000 at 12.5% simple interest for 90
days. Find the total amount that had to be paid after
90 days.
85. MONTHLY PAYMENTS A couple borrows $1,500
for 1 year at a simple interest rate of.
a. How much interest will they pay on the loan?
b. What is the total amount they must repay on the
loan?
c. If the couple decides to repay the loan by
making 12 equal monthly payments, how much
will each monthly payment be?
86. SAVINGS ACCOUNTS Find the amount of money
that will be in a savings account at the end of 1 year
if $2,000 is the initial deposit and the interest rate of
7% is compounded semi-annually. (Hint:Find the
simple interest twice.)
87. SAVINGS ACCOUNTS Find the amount that will
be in a savings account at the end of 3 years if a
deposit of $5,000 earns interest at a rate of ,
compounded daily.
88. CASH GRANTS Each year a cash grant is given to
a deserving college student. The grant consists of the
interest earned that year on a $500,000 savings
account. What is the cash award for the year if the
money is invested at a rate of 8.3%, compounded
daily?