. 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

2000000*.115/12*2 = 38333.33

40000*(1+2r) = 45000
r = .0625

A) I'd say either 25 or 24 April, since the extra day in Feb. comes off the end date.

B) 4450*.16/365*60 = 117.04

Looks like you have a good handle on this topic!

Thanks, I did finally get the hang of it after I turned it in the first time with all of those wrong. I don't know how I messed up on it so poorly.

Your answers are correct for the first two questions. However, there seems to be a mistake in your answer for the third question.

For question 3, to determine the date of the end of the term of the investment, you need to add 60 days to the initial deposit date of February 25. Since it's not mentioned whether it is a leap year or not, let's assume it is not a leap year. In this case, the end date would be April 26.

To calculate the ordinary interest, you can use the formula:

Interest = Principal * Rate * Time

In this case, the principal is $4,450, the rate is 16%, and the time is 60 days (or 60/365 years). Using these values, the interest earned would be:

Interest = $4,450 * 0.16 * (60/365) = $57.57 (rounded to two decimal places)

So, the correct answer for (b) would be that Sarai will earn $57.57 in interest.

Please note that if it is a leap year, the end date would be April 25, and the interest calculation would be slightly different.

1. To find the interest earned on the investment, you need to use the formula: Interest = Principal x Rate x Time. In this case, the principal is $2,000,000, the rate is 11.5% (or 0.115), and the time is 2 months (or 2/12 years).

Interest = $2,000,000 x 0.115 x (2/12) = $38,333.33

Therefore, the correct answer is $38,333.33, not $38,333.33 as you mentioned.

2. To determine the rate of interest Barney paid his parents, you can use the formula: Rate = (Interest / Principal) x 100%. In this case, the interest is $45,000 - $40,000 = $5,000, and the principal is $40,000.

Rate = ($5,000 / $40,000) x 100% = 12.5%

Therefore, the correct answer is 12.5%, not 6.25% as you mentioned.

3. To determine the end date of the investment term, you need to add the given 60 days to the deposit date of February 25. However, you also need to consider if it is a leap year or not.

a) If it is a leap year (with February 29), the end date would be April 26 (February 25 + 60 days).
b) To calculate the ordinary interest earned, you can use the formula: Interest = (Principal x Rate x Time) / 365. Here, the principal is $4,450, the rate is 16%, and the time is 60 days (or 60/365 years).

Interest = ($4,450 x 0.16 x (60/365)) = $117.04 (rounded to two decimal places for a 365-day year)

If you consider a year as 364 days instead, the ordinary interest earned would be:

Interest = ($4,450 x 0.16 x (60/364)) = $117.36 (rounded to two decimal places for a 364-day year)

Therefore, the correct answers are:
a) The end date is either April 25 or April 26, depending on whether it is a leap year or not.
b) The ordinary interest earned is $117.04 (for a 365-day year) or $117.36 (for a 364-day year), depending on the year length assumed.

Please double-check your calculations and consider the explanations provided above.