Homework SourseBusiness Math 1 Find the interest earned on 7125 deposited O
Business Math
1. Find the interest earned on $7125 deposited October 12th and withdrawn December 12th at a rate of 3.5% compounded daily?
2. Slater makes $196,200 per year as an airline pilot. He was notified of a 2.5% raise in a year in which the CPI index increases by 4%. Find the gain or loss in his purchasing power?
3. Lasting Effect Cabinets Inc. accepted a 3-year note for $11,125 in lieu of immediate payment for office supplies sold to a local firm. Find the maturity value given at 10% rate compounded annually and the present value of the note at 6% per year compounded semiannually?
Solution
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| Given | |||
| Principle amount deposited (P) | = | 7125 | $ |
| Deposition date | = | 12-Oct | |
| Withrawn date | = | 12-Dec | |
| No of days (n) | = | 61 | days |
| Rate of interest | = | 3.50% | |
| No of days in year | = | 365 | |
| ROI Compounded daily (\'r) | = | 3.5%/365 | |
| = | 9.58904E-05 | ||
| Amount | = | P (1+r/100)^n | |
| = | 7167 | ||
| Interest | = | Amount - Principal | |
| = | 42 | $ |
