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If you borrow $500 at an interest rate of 4% per year for two years, how much interest will you have to pay?
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- If you invest $ 500 on Lending Circle at a rate of 5% for 1.5 years, how much will you have earned?At what rate of interest will an investment double itself in 10 years?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?You borrow $500 from a family member and agree to pay it back in six months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after six months? How much is the interest?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?
- You borrow $800 from a family member and agree to pay it back in nine months. Because you are part of the family, you are only being charged simple interest at the rate of 0.6% per month. How much will you owe after nine months? How much is the interest?Does the compounding increases the amount of interest paid over a year atthe same nominal interest rate?Nicholas made a deposit of $5,000 in a savings account that earns 2% per year. What is the maximum amount he can withdraw after 21 years?