Ms. Jefferson has been given a loan of $20,000 for 1 year. If the interest charged is $800, what is the interest rate on the loan?4%
2.A saleswoman is working on a 6% commission basis. If she wants to make $2,400 in one month, how much must she sell?$40,000
3.If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?$8,764.08
1. 4% per annum
2 & 3 correct.
To find the interest rate on a loan, you can use the formula:
Interest Rate = (Interest / Principal) * 100
In the first question, Ms. Jefferson has been given a loan of $20,000 and the interest charged is $800. Plugging these values into the formula:
Interest Rate = (800 / 20000) * 100
Interest Rate = 0.04 * 100
Interest Rate = 4%
Therefore, the interest rate on the loan is 4%.
To find out how much a saleswoman must sell in order to make a specific amount of money, you can use the formula:
Sales = (Commission / Commission Rate)
In the second question, the saleswoman is working on a 6% commission basis and wants to make $2,400 in one month. Plugging these values into the formula:
Sales = (2400 / 0.06)
Sales = 40000
Therefore, the saleswoman must sell $40,000 worth of goods in order to make $2,400.
To calculate the amount of money in an account after a certain number of years with compound interest, you can use the formula:
Future Value = Principal * (1 + Interest Rate)^n
In the third question, $7,800 is deposited into an account paying 6% interest compounded annually, and we want to find out the amount in the account after 2 years. Plugging these values into the formula:
Future Value = 7800 * (1 + 0.06)^2
Future Value = 7800 * (1.06)^2
Future Value = 7800 * 1.1236
Future Value = 8764.08
Therefore, the amount of money in the account after 2 years is $8,764.08.