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
45,000=80,000(r)
45,000/80,000
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
To verify your answers, let's go through each question and show the steps to find the correct answers.
1. Jacksonville Technical College invested $2,000,000 for 2 months at an interest rate of 11.5% per year, simple interest. We can calculate the interest earned using the formula:
Interest = Principal * Rate * Time
First, we need to find the time in terms of years by dividing the number of months by 12:
Time = 2 months / 12 = 1/6 years
Now, we can substitute the values into the formula:
Interest = $2,000,000 * 0.115 * 1/6 = $383,333.33
So, the correct answer is $383,333.33.
2. Barney Casey borrowed $40,000 and paid back a total of $45,000 after 2 years. To find the rate of interest, we can use the formula:
Interest = Principal * Rate * Time
In this case, the interest paid is $45,000 - $40,000 = $5,000. We know the principal is $40,000, and the time is 2 years. Plugging in these values, we get:
$5,000 = $40,000 * Rate * 2
Dividing both sides by $80,000:
Rate = $5,000 / $80,000 = 0.0625 = 6.25%
So, the correct answer is 6.25%.
3. Sarai Sherman deposited $4,450 at an interest rate of 16% per year for 60 days. To find the end date of the investment, we need to add 60 days to the deposit date, which is February 25.
(a) Adding 60 days to February 25, we get either April 25 or April 26, depending on whether it's a leap year. So, both can be considered as possible answers.
(b) To calculate the ordinary interest earned, we use the formula:
Interest = Principal * Rate * Time
The principal is $4,450, the rate is 16%, and the time needs to be in terms of years. Since there are 365 days in a year, we divide 60 days by 365 to get the time:
Time = 60 days / 365 = 0.1644 years
Plugging in the values, we get:
Interest = $4,450 * 0.16 * 0.1644 = $117.36 (rounded to two decimal places)
So, the correct answer for (b) is $117.36 (if using 364 days in a year) or $117.04 (if using 365 days in a year).
Therefore, your answers are correct!