Question

Q.3. What is the interest on $4,000 invested for 2 years and 2 months at 10.5%? Q.4. Find the annual rate of interest required for $1,350 to earn $35.10 in 146 days. Q.5. How many days are needed for $1,500 to earn $69.04 at 10%% p.a.? Q.6. Find the principle that will accumulate to $2,627.08 in 3 years and 7 months at the rate of 82%

Answer 1

Please note that interest is calculated using the simple interest method. The compounding interest method is not used because the compounding details not provided in the question.

Answer 3
Number of months ((2*12)+2)			26
Interest = Principal x Annual Rate x Time
Interest = 4000 x 10.5% x 26/12
Interest for 2 years and 2 months			$            910.00
Answer 4
Interest = Principal x Annual Rate x Time
35.10 = 1350 x Annual Rate x 146/360
35.10 = 1350 x Annual Rate x 0.40555556
35.10 = Annual Rate x 547.50
35.10/547.50 = Annual Rate
Annual Rate of interest			6.41096%
Answer 5
Interest = Principal x Annual Rate x Time
69.04 = 1500 x 10.33333333% x Days/360
69.04 = 155 x Days/360
69.04/155 = Days/360
0.445419 = Days/360
0.445419*360 = Days
Number of days needed			160
Answer 6
Number of months ((3*12)+7)			43
Interest = Principal x Annual Rate x Time
Interest = Principal x 8.5% x 43/12
Total Accumulated Value = Principal + Interest
Put value of interest (Interest = Principal x 8.5% x 43/12)
Total Accumulated Value = Principal + (Principal x 8.5% x 43/12)
2627.08 = Principal + (Principal x 0.304583333)
2627.08 = Principal + 0.304583333* Principal
2627.08 = Principal* (1 + 0.304583333)
2627.08 = Principal * 1.304583333
2627.08/1.304583333 = Principal
2627.08/1.304583333 = Principal
Principal amount			$        2,013.73