(a) Heather borrowed $5000 from her grandmother as a down payment on her firstcar. She promised to repay the debt in 2 years at 7% per annum, simple interest.How much should Heather repay her grandmother?(b) How much must Jason deposit in a special account paying interest at the rate of9.5% to receive $75.21 in interest after 6 months?(c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate ofyearly intesest did the investment pay?

a) S.I formula to calculate amount is A=P x (1+rt) = 5000 x (1.14) =$5700

Answered: How much should Heather repay her…

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Economics

How much should Heather repay her grandmother?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

(a) Heather borrowed $5000 from her grandmother as a down payment on her first
car. She promised to repay the debt in 2 years at 7% per annum, simple interest.
How much should Heather repay her grandmother?
(b) How much must Jason deposit in a special account paying interest at the rate of
9.5% to receive $75.21 in interest after 6 months?
(c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate of
yearly intesest did the investment pay?

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