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- Bobby was desperate. He borrowed $600 from a pawn shop and understood he was to repay the loan starting next month with $100, increasing by $10 per month for a total of 8 months. Actually, he misunderstood. The repayments increased by 10% each month after starting next month at $100. Use a spreadsheet to calculate the monthly interest rate that he thought he was to pay, and what he actually will pay.How long your money would double its amount if you invested at 5%compounded annually?If you invest $ 500 on Lending Circle at a rate of 5% for 1.5 years, how much will you have earned?
- What is the effective annual interest rate?Miho invested $5000 in a bank that pays an annual interest rate of 9% compounded continuously. What is the amount she can get after 15 years from the bank?Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00 promissory note with a maturity of 6 months. What is the annual and monthly simple interest rate charged by the loan shark?
- How is a Compounding Period determined?At 10% compounded annually, how long will it take for money to double itself?Joseph buys a new home using an interest only loan where he pays only the interest on the value of the home each month. The home is valued at $200,000 and Joseph pays 5% interest per year on the home. How much is his monthly interest payment?
- A person borrowed $200 for one month and paid $30 in interest. However, she did not know whether the interest was simple or compounded monthly. How much does she need to pay back if this loan is not paid off for 1 year. What is the annual interest rate for each situation? Calculate for both the annual simple and the compound rates.How long will it take for a money to quadruple itself if invested at 12% simple interest rate.Is the cash flow broken into four parts? What are they?