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ANSWER. I = 1,100 * 0.05 * (5/12) I = 1,100 * 0.05 * 5/12 I = 55 * 5/12 I = 275/12 I ≈ $22.92 Julio owes Maria approximately $22.92 in interest if he pays her back today. ANSWER. A. R = I / (P * T) R = $70 / ($3,500 * 0.5) R = $70 / $1,750 R = 0.04 or 4% So, the investment earned an annual rate of simple interest of 4%. ANSWER. A. P = I / (R * T) P = $2,035 / (0.06 * 0.917) P = $2,035 / 0.05502 P ≈ $37,070.89 So, the amount of money invested at 6% annual simple interest for 11 months that earns $2,035 of interest is approximately $37,070.89. ANSWER. A. T = I / (P * R) T = $1,187.50 / ($95,000 * 0.05)

T = $1,187.50 / $4,750 T = 0.25 So, it will take 0.25 years to earn $1,187.50 in simple interest To find out how many months this is, you need to multiply by 12 0.25 years * 12 months/year = 3 months Therefore, it will take 3 months for a $95,000 investment at a 5% interest rate to earn $1,187.50 in simple interest. ANSWER. From November 3, 2011, to April 14, 2012, there are 5 months and 11 days. To convert this time to years, we need to consider a year as having 12 months. So, the time (T) is: T = 5 months + 11 days / 30 days (approximating a month as 30 days) = 5.3667 months / 12 months/year = 0.4472 years (approximately) Now, you can calculate the simple interest: I = $4,200 * 0.08 * 0.4472 I ≈ $150.05 Azul owes Hannah approximately $150.05 in interest on April 14, 2012, in addition to the principal amount. ANSWER. T = I / (P * R) T = $1,283.42 / ($15,000 * 0.09) T = $1,283.42 / $1,350 T ≈ 0.952 years 0.952 years * 365 days/year ≈ 347 days Now, to find the date when Aladdin borrowed the money, subtract 347 days from September 13, 2011:

September 13, 2011 - 347 days = November 2, 2010 So, Aladdin borrowed the money from the Genie on November 2, 2010. ANSWER. T = 4 months / 12 months/year = 1/3 year Now, you can calculate the interest earned: I = $35,000 * 0.0425 * 1/3 I = $1,191.67 Down Payment = Principal (Inheritance) + Interest Down Payment = $35,000 + $1,191.67 Down Payment ≈ $36,191.67 b) The interest you will have earned is $1,191.67. ANSWER. T = 8 months / 12 months/year = 2/3 year P = I / (R * T) P = $8,000 / (0.045 * 2/3) P = $8,000 / (0.03) P = $266,666.67 T = 28 / 30 T = 0.9333 years (approximately)

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Now, you can calculate the rate (R): R = (I / (P * T)) * 100 R = (($20,168.77 - $20,000) / ($20,000 * 0.9333)) * 100 R = ($168.77 / $18,666.60) * 100 R ≈ 0.902% So, the simple interest rate for the loan is approximately 0.902%. ANSWER. T = 9 months / 12 months/year = 0.75 years Now, calculate the interest (I): I = $1,500 * 0.05 * 0.75 I = $56.25 So, Erin needs to pay $1,500 (the original debt) + $56.25 (the interest) nine months from now, which is $1,556.25. b) Late Penalty = Total Amount - Original Debt Late Penalty = $1,556.25 - $1,500 Late Penalty = $56.25 The late penalty is $56.25. ANSWER. calculate the interest (I) for the first payment: I = $600 * 0.07 * 1/3 I = $14 So, the interest for the first payment is $14. The total amount Rupert should pay today for the first payment is $600 + $14 = $614. b) For the second payment of $475 that is due eleven months from now:

Principal (P) is $475. Rate (R) is 7% or 0.07 as a decimal. Time (T) is 11 months. Again, convert the time to years: T = 11 months / 12 months/year = 11/12 year Now, calculate the interest (I) for the second payment: I = $475 * 0.07 * 11/12 I ≈ $34.46 So, the interest for the second payment is approximately $34.46. The total amount Rupert should pay today for the second payment is $475 + $34.46 = $509.46. To find the total amount Rupert should pay today for both payments, add the amounts for each payment: Total Payment Today = $614 (first payment) + $509.46 (second payment) Total Payment Today ≈ $1,123.46 b) The early payment benefit is the difference between the total payment today and the sum of the original payments: Early Payment Benefit = Total Payment Today - (First Payment + Second Payment) Early Payment Benefit = $1,123.46 - ($600 + $475) Early Payment Benefit = $1,123.46 - $1,075 Early Payment Benefit ≈ $48.46 The total early payment benefit is approximately $48.46. ANSWER. T = 8 months / 12 months/year = 2/3 year Now, calculate the interest (I) using the simple interest formula: I = P * R * T I = $7,500 * 0.06 * 2/3 I = $900 Now, add the interest to the principal to find the maturity value: Maturity Value = Principal + Interest

Maturity Value = $7,500 + $900 Maturity Value = $8,400 The maturity value of the promissory note on the legal due date is $8,400. ANSWER. Face Value (FV) is $100,000. Market Yield (Yield) is 1.5% or 0.015 as a decimal (1.5% expressed as a decimal by dividing by 100). Days to Maturity is 182 days (the T-bill's maturity period). Now, plug these values into the formula: Price = $100,000 / (1 + (0.015 * (182 / 365))) Price = $100,000 / (1 + (0.015 * 0.4986)) Price = $100,000 / (1 + 0.007479) Price = $100,000 / 1.007479 Price ≈ $99,253.63 So, the price of the T-bill on its issue date is approximately $99,253.63.

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