it is about Simple Interest Present Value 1-Find the amount Ashkin should deposi
ID: 2713329 • Letter: I
Question
it is about Simple Interest Present Value
1-Find the amount Ashkin should deposit today if he needs $3,750 in his account in 5 months. Assume his account pays 4% simple interest.
2-Miguel promised to give his daughter $13,000 at the end of 3 years for a used car. What lump sum should he deposited today in an account paying 4% simple interest in order for him to have $13,000 at the end of 3 years?
8-A new computer costs $2,100. If the price of computers has increased by 1% in the past 6 months, how much did the computer cost 6 months ago? Assume the price increase follows a simple interest calculation.
9-Today, new tires for a high performance car cost $1,400. If the price of tires has increased by 1% over the past 12 months, how much did they cost 12 months ago? Assume the price increase follows a simple interest calculation.
10-A new luxury car costs $39,000. If the price of the car has increased 2% in the past 12 months, how much did the car cost 12 months ago? Assume the price increase follows a simple interest calculation.
Explanation / Answer
1-Find the amount Ashkin should deposit today if he needs $3,750 in his account in 5 months. Assume his account pays 4% simple interest.
Ashkin should deposit today = Amount*100/(100+RT)
Ashkin should deposit today = 3750*100/(100+4*5/12)
Ashkin should deposit today = $ 3688.52
2-Miguel promised to give his daughter $13,000 at the end of 3 years for a used car. What lump sum should he deposited today in an account paying 4% simple interest in order for him to have $13,000 at the end of 3 years?
Amount should deposit today = Amount*100/(100+RT)
Amount should deposit today = 13000*100/(100+4*3)
Amount should deposit today = $ 11607.14
8-A new computer costs $2,100. If the price of computers has increased by 1% in the past 6 months, how much did the computer cost 6 months ago? Assume the price increase follows a simple interest calculation.
computer cost 6 months ago = Amount*100/(100+RT)
computer cost 6 months ago = 2100*100/(100+1*6/6)
computer cost 6 months ago = $ 2079.21
9-Today, new tires for a high performance car cost $1,400. If the price of tires has increased by 1% over the past 12 months, how much did they cost 12 months ago? Assume the price increase follows a simple interest calculation.
cost 12 months ago = Amount*100/(100+RT)
cost 12 months ago = 1400*100/(100+1*12/12)
cost 12 months ago = $1386.14
10-A new luxury car costs $39,000. If the price of the car has increased 2% in the past 12 months, how much did the car cost 12 months ago? Assume the price increase follows a simple interest calculation.
cost 12 months ago = Amount*100/(100+RT)
cost 12 months ago = 39000*100/(100+2*12/12)
cost 12 months ago = $ 38,235.29
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