Answers Begin On Page AN-32.: Solution
Answers Begin On Page AN-32.: Solution
Answers Begin On Page AN-32.: Solution
SOLUTION The maturity value, the amount to be repaid to the bank by the government,
is L = $500,000. The rate of interest is r = 0.25% = 0.0025. The time is
1
t = 6 months = year. The proceeds R to the government are
2
Skill Building
In Problems 5–12, write each decimal as a percent.
5. 0.60 6. 0.40 7. 1.1 8. 1.2 9. 0.06 10. 0.07 11. 0.0025 12. 0.0015
In Problems 41–46, find the simple interest rate for each loan.
41. $1000 is borrowed; the amount owed after 6 months is $1050. 42. $500 is borrowed; the amount owed after 8 months is $600.
43. $300 is borrowed; the amount owed after 12 months is $400. 44. $600 is borrowed; the amount owed after 9 months is $660.
45. $900 is borrowed; the amount owed after 10 months is $1000. 46. $800 is borrowed; the amount owed after 3 months is $900.