posted by Alex on .
1. Jacksonville Technical College received $3,445,553 in state aid on September 15 for the fall academic semester. The vice-president for finance decided to invest $2,000,000 in a 2-month investment that pays 11.5% simple interest. How much interest will the college earn on the investment? For this one the interest earned would have been 38333.33
2.Barney Casey borrowed $40,000 from his parents for 2 years. He paid them a total of $45,000 at the end of the 2-year term of the simple interest loan. What rate of interest did he pay his parents? The answer I came up with was 6.25 percent.
3.Sarai Sherman agreed to deposit $4,450 in an account paying 16% simple interest per year for 60 days. If she made the deposit on February 25, determine (a) the date of the end of the term of the investment, and (b) the ordinary interest Sarai will earn. A)is either 25 or 26 April depending if it is a leap year. B)Interest earned would have been 117.04 if using 365 days per year or 117.36 for 364 days.
I just want to make sure my answers are correct before I turn them in to my teacher again. Thank you
Your answer for number 2 is incorrect I got 56.25% it's 45,000=40,000(r)2
r=.5625 or 56.25%.
number three is also incorrect. Answer A is correct, but answer B is not. You have to examine the key word ordinary value, which is number of days divided by 360. what you found was the exact intrest. ordinary instrest is number of days divided by 360. It would be 4,450X.16X60/360=$118.67