Copyright © 2008, The McGraw-Hill Companies, Inc.
- Terri has borrowed $8,200 for 1 year at a simple interest rate of 11.5% per annum. What is the total amount she will
need to repay the loan?
F. Interest as a Percent (Multiple-Year Loans)- Westerman Capital Corp. loaned Milford Financial Inc. $100,000 for 2 years at 8% simple interest. How much interest
will Milford Financial pay? - Kyle borrowed $800 from Gavin for 4 years at 5 ½% simple interest. How much interest will Kyle pay for this loan?
- Reza borrowed $16,000 from Wiscoy Savings and Loan for 3 years at 9.65% simple interest. How much total interest
will he pay? - Wendy loaned Tom $2,896.17 for 8 years at 6.74% simple interest per annum. How much total interest will Wendy earn?
- Yushio is borrowing $3,525 from Houghtonville National Bank for 2 years at 12.6% simple interest. How much will he
need to repay the loan? - Mary has agreed to loan Karen $1,125.37 for 5 years at 7^7 ⁄ 8 % simple interest. How much will Karen receive when the
loan is repaid? - Tris borrowed $25,300 at 9 ¼% simple interest for 3 years. How much will he need to pay off this loan?
- Glenys made a loan of $16,425.75 for 3 years at 14.79% simple interest. How much in total will she receive when the
loan is repaid?
G. Grab Bag- Bob deposited $15,000 in a CD for 3 years paying 4.33% simple interest. How much total interest will he earn?
- When I went out to lunch with a few coworkers last week I forgot my wallet. One of my coworkers paid my $10.75
check, and I paid her back $12 at the end of the week. How much interest did I pay? - June plans to deposit $800 in a certifi cate of deposit paying 6^3 ⁄ 8 % simple interest for 2 years. What will her CD be worth
at the end of the term? - Hassan has decided to deposit $3,257.19 into a bank CD paying 3.25% simple interest for 1 year. What will the CD be
worth at the end of the year?
Exercises 1.1 11