? Linda received $875 on an investment of $14,000 at 15% annual simple interest rate. How long was the money invested?
? Freddy borrowed $10,000 for a car for 3 years and paid $1,500 in simple interest. What was the rate of interest?
? Diana owns municipal bonds valued at $14,500, which is 12% of her total investments. What is the value of her total investments? Round to the nearest dollar?
? What is the straight-line depreciation for a machine that was purchased for $15,000, cost $750 to install, has a useful life of six years and a salvage value of $500.
? Anita Tooms bought a new computer system. To pay for the system, she borrowed $2670 from the credit union at 7 1/3% interest for 85 days. Find the ordinary interest owed.
1. Simple Interest, I = Prt / 100
where P= principal value = $14000
r = rate of interest = 15%
so I = $875 = ($14000 * 15 * t ) /100
i.e. t = ($875 * 100)/ ($14000*15) = 0.41 years = 152 days
Linda invested money for 152 days
2. Simple Interest, I = Prt / 100
where P= principal value = $10000
r = rate of interest
t= 3 years ...