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Solve the following word problems. Show the complete soluti0ns and B0X the final answer.
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- Suppose that you withdraw ₱ 1,500.00 from your savings account. Over the weekend, several people want to borrow money from you. Read the stories and decide to whom you will lend your money. Story 1. Your younger sister is having a garage sale. She needs cash to make a change for the day. She will sell you a bond for ₱ 1,000.00 You will keep the bond for a week, and she promises to pay you back. Story 2. Your older brother has a small business idea but doesn’t have any money. He wants to borrow your ₱ 1,500.00 and promises to pay you back ₱1,800.00 in four weeks. Story 3. Your best friend at school, whom you know very well, wants to borrow your ₱1,500.00 to buy cupcakes. She plans to sell at a higher price and promises to pay you back ₱1,700.00 in two weeks. Whose bonds will you buy? Why?Suppose that you withdraw ₱ 1,500.00 from your savings account. Over the weekend, several people want to borrow money from you. Read the stories and decide to whom you will lend your money. Story 1. Your younger sister is having a garage sale. She needs cash to make a change for the day. She will sell you a bond for ₱ 1,000.00 You will keep the bond for a week, and she promises to pay you back. Story 2. Your older brother has a small business idea but doesn’t have any money. He wants to borrow your ₱ 1,500.00 and promises to pay you back ₱1,800.00 in four weeks. Story 3. Your best friend at school, whom you know very well, wants to borrow your ₱1,500.00 to buy cupcakes. She plans to sell at a higher price and promises to pay you back ₱1,700.00 in two weeks. Whose bonds will you buy? Why? (WITH SOLUTION)Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest charges, which are 1.8% per month on the unpaid balance. Find the interest charges if she moves the debt to a credit card charging 0.7% per month on the unpaid balance. What are the interest charges at 1.8% a month? What are the interest charges at 0.7% a month? What are the savings that using the 0.7% card brings over the 1.8% card?
- A woman went to the Beneficial Loan Company and borrowed S10,000. She must pay S323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.Charles buys a used car by paying GH¢1500 down and GH¢182.50 a month for 3 years.a. what was the cash price of the car, if the interest rate on the loan is j12 = 18%?b. what was the total interest on the loan?2. Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent, how much money will she have in her account after 5 years? 7. You are Co introductory rate months and the rate be entered into a drawin commercial. You pay $50 a you switch? Use the smart dec mathematically and include an em
- 6. Nita is preparing to go on a trip and determined she needs to bring $ 7,600. How much must she borrow for a simple discount note at 6.5% for 90 days?Steve has maxed out his credit card and owes $22,000. The annual interest on his credit card is 18.25%. a. The minimum payment for some credit cards is 2% of what you owe. What is Steve’s minimum payment? b. Suppose Steve continues to pay the amount found in part a, how long until he has paid off her credit card dept? Assume he doesn’t charge anything else. c. What is the total amount he spent to cover the $22,000 debt? d. Suppose Steve decides to pay $750 per month, how long until he pays off the credit card? e. How much does she save by paying $750 a month? f. Suppose Steve is getting married in 25 months, what should he pay every month to clear hiscredit card debt by the time he is married?** HINT: Look online or look back at your worksheets for "add- on interest" problems! Melanie bought a used car for $10,000. (S)he put $100 down and financed the balance with the dealer at 5% add-on interest. If they agreed to make 36 monthly payments, then: (Round each answer to the nearest penny) What is the total payback amount of the loan? $ What is the amount of each payment? $ /month What is the total amount of interest paid on the loan? $
- 4. Jasmine bought a laptop amounting P 45,00 in an installment basis with 1.5% annual interest. She provides a P5000 down payment and promise to pay P3000 at the end of 1st year, 9000 at the end of 2nd year. 4000 at the end of 5th year and the remaining balance at the end of 8th year. Find the remaining balance and create a cash flow diagram. 5. Emmanuel is a money lender who gives 15% interest rate annually to allIl borrower. Jessie borrowed $9000 to him. Based on the contract, Jessie needs to pay the borrowed money and its interest in 8years Jessie decided to deposit his payment twice a year and the bank provides him 3% interest compounded semi-annually. Find the sem-annually deposit to pay the borrowed money and interest. 6. Find the rate of interest if the principal value is $28000 with an interest value is $9000 after 5 years.2. You purchase a washing machine and dryer for P750. You pay 20% down and agree to repay the balance in 12 equal monthly payments. The finance charge on the balance is 8% simple interest. a. Find the finance charge. b. Estimate the annual percentage rate. Round to the nearest tenth of a percent. 3. Carlos Menton purchases a new laptop computer from Knox Computer Solutions for5. When Jose just moved into the town and wanted to set up an internet connection using AT&T, he was told that the hook up fee is $200. Jose did not have that much money and wanted to pay for it in the next four months when his part-time job at the library started. AT&T customer service said that it was fine, but AT&T did charge 1% monthly interest rate with monthly compounding. How much will his monthly installment be in the next four months?