a.Dr. Vaccarro invested his money at 12.5% for 175 days and earned interest of $
ID: 2657379 • Letter: A
Question
a.Dr. Vaccarro invested his money at 12.5% for 175 days and earned interest of $760. How much money did Dr. Vaccarro invest?
b.In June, Becky opened a $20,000 bank CD paying 1% interest, but she had to withdraw the money in a few days to cover one child's college tuition. The bank charged her $1,000 in penalties for the withdrawal. What percent of the $20,000 was she charged
c.Find how long in days David Wong must invest $23,500 of his company's cash at 8.4% in order to earn $652.50 in interest
d.John Joseph borrowed $10,800 for 1 year at 14%. After 60 days, he paid $2,500 on the note. On the 200th day, he paid an additional $5,000. Use the U.S. Rule and ordinary interest to find the final balance due
Explanation / Answer
Answer (a)
Let amount invested be X
So, (X*12.50%)*(175/365) = $760
X = $12,680
Answer (b)
Penalties percentage = ($1,000/$20,000)*100
= 5%
Answer (c)
The annual interest will be = $23,500*8.4%
= $1,974
Days required to earn interest of $652.50 = (365/1974)*652.50
= 121 days approx
Answer (d)
Calculation of interest payable-
On $2,500 = (2,500*14%)*(60/365) = $57.53
On $5,000 = (5,000*14%)*(200/365) = $383.56
On remaining $3,300 = (3,300*14%)*(365/365) = $462
Final balance due after 1 year will be = $3,300+$462
= $3,762
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