4. [5.1-5]. Find the simple interest. $3,724 at 8.4% for 11 months. 5.1 Example Problems

1. [5.1-4]. Find the simple interest. $1,974 at 6.3% for 7 months.

5. [5.1-17] Find the present value of $48,000 in 9 months at 5% interest.

2. [5.1-16] Find the present value of $15,000 in 8 months at 6% interest.

The present value is $46265.06 The present value is $14423.08

6. [5.1-21]. Find the proceeds. $9,450 ; discount rate 10%; length of loan 7 months.

3. [5.1-20]. Find the amount of the discount and the proceeds. $7,150;

discount rate 12%; length of loan 11 months.

Discount =

Proceeds= The proceeds is $8,898.75.

7. [5.1-25] Find the interest rate to the nearest tenth on the proceeds for the following simple discount notes. $6,200; Discount rate 10%: length of loan 8 months.

Discount =

Proceeds= Solution:

The actual interest rate is approximately 10.7%