28 A bank advertises a loan for 5.5% interest for 3 years. Find the amount of in
ID: 2919414 • Letter: 2
Question
28 A bank advertises a loan for 5.5% interest for 3 years. Find the amount of interest on a $21,500 loan. 29. Estimate the interest on a deposit of $28,990 at 8.5% interest for 7 years. 30, A car is purchased for $25,000. The tax rate is 565%. A person is planning to take a loan on 80% of the price with the tax included. a. How much tax is charged on the car? b. How much money is the person planning to borrow? c. If the interest rate is 3.5% and the time of the loan is 4 years, how much interest will the person pay? a. Compute the total cost of the car including the original cost, the tax, and the interest on the loan? 31, A sweater is marked down 47%. Its original price was $68.95, what is the price of the sweater before sales tax?Explanation / Answer
28. Since there is no mention of compounding of interest, we will assume that the Bank has quoted a simple rate of interest. The simple interest @ 5.5 %, on $ 21500, for 3 years is $ 21500*(5.5/100 )*3 = $ 3547.50.
29. Since there is no mention of compounding of interest, we will assume that the Bank has quoted a simple rate of interest. The simple interest @ 8.5 %, on $ 28990, for 7 years is $ 28990*(8.5/100 )*7 = $ 17249.05.
30. The amount of tax on the car is $ 25000*5.65/100 = $ 1412.50 so that the cost of the car, including the tax is $ 25000+$ 1412.50 = $ 26412.50.
Further, 80 % of $ 26412.50 is $ 26412.50 *80/100 = $21130. Thus, the person is planning to borrow $ 21130.
Further, since there is no mention of compounding of interest, we will assume that the Bank has quoted a simple rate of interest. The simple interest on $ 21130 @3.5 % for 4 years is $ 21130*(3.5/100)*4 = $ 2958.20. Thus, the person will pay an interest of $ 2958.20.
31. The amount of discount quoted on the sweater is $ 68.95*47/100 = $ 32.41( on rounding off to the nearest cent). Thus, the price of the sweater before the sales tax is $ 68.95-$32.41 = $ 36.54.
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