Question

name

1. to finance the remodeling of her kitchen, rosa borrowed $26,400 on an 18 - month home equity loan. she signed a promissory note bearing interest at 12 ½%. what total amount did rosa pay on the due date?

find the exact interest to the nearest cent.
6.) $1,200 @ 6% for 240 days
7.) $2,400 @ 9 % for 60 days
find the ordinary interest to the nearest cent.
8.) $450 @ 12% for 146 days
9.) $1,450 @ 7% for 100 days

Explanation:

Problem 5

Step1: Identify principal, rate, time

Principal \( P = \$26400 \), Rate \( r = 12\frac{1}{2}\% = 0.125 \), Time \( t = 18 \) months \( = \frac{18}{12} = 1.5 \) years.

Step2: Calculate simple interest

Simple Interest formula: \( I = P \times r \times t \)
\( I = 26400 \times 0.125 \times 1.5 \)
\( I = 26400 \times 0.1875 \)
\( I = 4950 \)

Step3: Calculate total amount

Total Amount \( A = P + I \)
\( A = 26400 + 4950 \)
\( A = 31350 \)

Step1: Identify values

Principal \( P = \$1200 \), Rate \( r = 6\% = 0.06 \), Time \( t = \frac{240}{365} \) (exact interest uses 365 days).

Step2: Calculate interest

\( I = P \times r \times t \)
\( I = 1200 \times 0.06 \times \frac{240}{365} \)
\( I = 1200 \times 0.06 \times 0.657534 \)
\( I \approx 1200 \times 0.039452 \)
\( I \approx 47.34 \)

Step1: Identify values

Principal \( P = \$2400 \), Rate \( r = 9\% = 0.09 \), Time \( t = \frac{60}{365} \) (exact interest).

Step2: Calculate interest

\( I = P \times r \times t \)
\( I = 2400 \times 0.09 \times \frac{60}{365} \)
\( I = 2400 \times 0.09 \times 0.164384 \)
\( I \approx 2400 \times 0.014795 \)
\( I \approx 35.51 \)

Answer:

\$31350

Problem 6