Purchase Solution

simple interest and effective interest

Not what you're looking for?

Ask Custom Question

Show your work (Show the formula, the values of the variables in the formula, and the result of the formula). Final answers should be rounded to the nearest cent (two decimal places). Beware of rounding intermediate results.

1. A resident of the United States has a base income of $23,000 after adjustments for deductions. New legislation by Congress would tax this income at a rate of 11 percent. What tax would be due?

2. Find the simple interest on $8537 at 10% per annum for 8 months.

3. Find the simple exact interest on $24,281 at 12 3/4% (per annum) from June 8 of one year to February 14 of the next year.

4. Find the effective rate corresponding to 3% compounded quarterly.

Purchase this Solution
Solution Summary

The solution explains how to calculate the simple interest and the effective interest in detail.

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

View More Free Quizzes
Related BrainMass Solutions

  • Sample Interest and Effective Rate Calulcation

    590725 Sample Interest and Effective Rate Calulcation 8. A loan for $3,500 with a simple annual interest rate of 11% was made on September 5 and was due on November 21. Find the ordinary interest. 9.

  • Effective Rate of Interest: Simple, Discounted, Installment, Compensating Balance

    59486 Effective Rate of Interest: Simple, Discounted, Installment, Compensating Balance Please figure the following problem so I can understand how to figure interest: Your company plans to borrow $5 million for 12 months, and your banker gives you

  • Interest and Taxes

    Interest and taxes are calculated.

  • Algebra: Simple Interest

    I= 2,600*0.18*160/360 I = $208 Finding simple interest and discount rates are examined.

  • Cost of Bank Loans

    to be paid back and the interest amount.

  • Implicit interest rate

    How does this affect the implicit effective annual interest rate? In order to find the interest rate, we need to know the principal amount, interest amount and the time period.

  • This post addresses financing an expansion.

    a) 12 percent rate on a simple interest loan, with monthly interest payments. Effective Interest Rate = [1 + (0.12 / 12)]12 - 1 = 12.68% b) 10 percent annual rate on a discount interest basis with no compensating balance.

  • Effective Interest Rate (APR)

    Because this is a short-term note, I will assume that the note bears simple interest. Therefore, Interest = Amount repaid - Proceeds Interest = $240,000 - $232,000 Interest = $8,000 There are 152 days between August 1 and December 31.

  • Effective rate under different terms

    364318 Effective rate under different terms Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 14% interest. You would like to know the effective rate of interest for te following types of loans.

View More Related Solutions