2.5 Review Exercises
- At what rate of simple interest will $1200 accumulate interest of $72 in 6 months?
- Eighty days after borrowing money, a person pays back exactly $850. How much was borrowed if the $850 payment includes principal and simple interest at 9 ¾ %?
- Find the present value at 12% simple discount of $1000 due in 5 months. What is the simple discount?
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A bank charges 12% simple interest in advance. A borrower needs $2000 cash, to be repaid with interest in 9 months. What size loan should he ask for, and how much interest will he pay?
