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Tutors Answer Your Questions about Money Word Problems (FREE)
Question 571145: Henry invest money in two plans. He invest three-fifths of the money in an account at a return rate of 7%. He invests the remainder of the money in an account with a return rate of 3%. I f the total intrest earned in one year for the investments is $54.00, how much was invested in each plan. i made a chart that says account, rate, principal, and intrest
under account i have first account and second account. under rate i have 0.07 and 0.03. and under principal i have 3/5p but my problem is i dont know how to find 0.03's principal. so for 0.07 in the intrest box i have 0.07*3/5p.
Answer by josmiceli(6769)   (Show Source):
You can put this solution on YOUR website!If  = principle
 is invested @ 7%
 is invested @ 3%
Note that 
as it should
given:
 ( I used decimals instead of fractions )
$600 was invested @ 7%
$400 was invested @ 3%
Question 571100: Suppose you invest money in two accounts. One of the accounts pays 8% annual interest, whereas the other pays 9% annual interest. If you have $2000 more invested at 9% than you have invested at 8%, how much do you have invested in each account if the total amount of interest you earn in a year is $860?
Answer by mananth(10539)  (Show Source):
You can put this solution on YOUR website!8%---------------x
9%= x+2000
sum of idividual interests = total interest
0.08x+0.09*(x+2000)=860
0.08x+0.09x+180=860
0.17x=860-180
0.17x=680
/0.17
x= 680/0.17
x= 4000
Amount invested @8% = $4000
Amount invested @ 9% = $4000+2000 = $6000
m.ananth@hotmail.ca
Question 571060: Suppose you start saving today for a down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after your initial deposit. The account has annual compounding and an APR of 2.7%. How much would you need to deposit now to reach your goal in 5 years?
Answer by stanbon(48502) (Show Source):
Question 570858: Jane deposits $400 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 4 years?
Answer by JBarnum(1826)  (Show Source):
Question 570784: Dear Sirs,
- How many times heavier is 35kg than 5kg
- What sum of money is 3 times larger than 15p.
Thank you
Answer by Alan3354(21544)  (Show Source):
You can put this solution on YOUR website!- How many times heavier is 35kg than 5kg
6 times heavier = 7 times as heavy.
------------------
- What sum of money is 3 times larger than 15p.
1 time more = 30p
2 times more = 45p
3 times more = 60p
Question 570736: Kate invested $3500 at a 5% simple interest rate. How many years will it take for the original amount of money to double?
Answer by josmiceli(6769) (Show Source):
Question 570016: 5. The same salesman has a particular trip of 48 miles, which he often takes. Four times it has taken him one hour to complete the trip and six times it has taken one and a half hours. What is his expected time per trip? (Now convert the data to miles per hour and then calculate his expected speed. Compare the two answers.)
6. A small loan company finds 12% of its loans are defaulted for an average of 20% of the loan value. What is the expected percent of default for all their loans?
7. A mail order company finds 18% of the purchases of a particular item are returned. The company estimates each return costs $0.70 in transportation and extra handling. What is the expected extra cost due to returns per unit of this item?
8. A second-hand car lot has a mark-up of $250 on 65% of its cars and a mark-up of $400 on the rest. What is the expected mark-up?
9. A department store discovers twice as many customers buy two units of $3.95 (for the pair) as buy one unit for $2.15. What is the expected purchase price per unit?
10. A magazine states the average number of cars per subscriber family is 1.2. If 20% of the family subscribers have no cars, what is the average number of cars per family of those families, which have one or more cars?
Answer by solver91311(12114)  (Show Source):
You can put this solution on YOUR website!
Is there some part of the concept "one problem per post" that you don't quite comprehend, or do you just think that you are too important to have to be concerned with petty annoyances like rules?
John
My calculator said it, I believe it, that settles it
Question 569750: If you buy a shirt for 225 dollars, the discount was 25%. What is original price of shirt?
Answer by josmiceli(6769) (Show Source):
Question 569557: I loaned a friend $6,000.00 she said she would pay me 6% interest. She is paying me back at the rate of $50.00 a month. How long will it take for her to pay me back the principal and interest.
Found 2 solutions by JBarnum, ankor@dixie-net.com:
Answer by JBarnum(1826) (Show Source):
You can put this solution on YOUR website!well is the interest per month or year also is it compound interest or simple interest...without these variables its not possible to get the correct answer unless you want 4 answers to the question. please make sure the question has its specifics or its an incomplete question or ask for all 4 possibilities.
6%of 60000= 360 meaning total of 6360
so if its 6% a month its something like
pay the 50 first month
6360-50=6310 *.06=6688.6
6688.6-50=6638.6 shed never pay it off so i doubt this method
say just simple interes of 6% no per month or year.
6%of 60000= 360 meaning total of 6360
6360/50=127.2 months
.2*30=6 days
127/12=10.58
10years 7months 6days
the principle is simple 50*12months=600, 600*10years=6000, so 10 years for simple interest payback of the principle. another 7months and 6 days for the simple interest...idont know if this is the answer you arelooking for but good luck
either way i wouldnt lend someone 6 grand if they only paying me back 50 bucks a month or id charge compound interest atleast because of how long it takes them to pay it back but its just a question.
Answer by ankor@dixie-net.com(12680)  (Show Source):
You can put this solution on YOUR website!I loaned a friend $6,000.00 she said she would pay me 6% interest.
She is paying me back at the rate of $50.00 a month.
How long will it take for her to pay me back the principal and interest.
:
About 184 months, 15 yrs, 4 months!
:
You might want ask her to step it up to $100 a month; that would cut it down to about 72 months which is only 6 years
:
And she would pay about $2000 less interest
Question 569517: 6300 is invested part of it at 11% and part of it at 8% for a certain year the total yield is 597.00. how much was invested at each rate
How much was invested at 11% and 8%
Answer by bluemockingjay7(41)  (Show Source):
You can put this solution on YOUR website!x = P1 r1 = 11% = .11
6300 - x = P2 r2 = 8% = .08
x(.08) + (6300 - x)(.11) = 597
.08x + 693 - .11x = 597
.08x - .11x = 597 - 693
-.03x = -96
-.03x/-.03 = -96/-.03
x = 3200
invested at 11% = 3200
invested at 8% = 6300 - 3200 = 3100
Question 569365: Find the amount of interest and the monthly payment for the loan. Purchase a car for $42,500 at 2.4% add-on rate for 5 years. (Round your answers to the nearest cent.)
the correct answer was 5100 for interest
the correct answer was 793.33 per month
I had 1751 for interest and 388.73 for monthly payment. How did they arrive at 5100 and 793.33. Thanks.
Answer by solver91311(12114) (Show Source):
Question 569359: A car dealer will sell you a used car for $7,771 with $771 down and payments of $237.03 per month for 36 months. What is the simple interest rate? (round each answer to the nearest). the correct answer is 7.3% My answer was 4.1%
I did the following:
$7,7771 - $771 =7000
I=/$237.03(36) = 8533.08
7000(r)(3)= 21,000
8533.08/21000= 0.406
I want to see how they arrived at 7.3% thanks.
Answer by solver91311(12114) (Show Source):
Question 568936: On her most recent investment Kristi earned $300 on a total of $2,500 invested. What is her rate of return?
Answer by Maths68(1140)  (Show Source):
Question 568939: John invested $7500 at 10.4% simple interest for one year. How much additional money must he invest at a simple interest rate of 14% so that the total interest earned is 12% of the total investment ?
Answer by lwsshak3(2905) (Show Source):
You can put this solution on YOUR website!John invested $7500 at 10.4% simple interest for one year. How much additional money must he invest at a simple interest rate of 14% so that the total interest earned is 12% of the total investment ?
**
let x=additional money John must invest at 14%
7500+x=total investment
..
10.4%*7500+14%x=12%(7500+x)
780+.14x=900+.12x
.02x=120
x=6000
ans:
additional money John must invest at 14%=$6000
Question 568363: John sold you a candy bar for $1.00 that he bought for only 25 cents. What was the percent of increase?
Answer by stanbon(48502) (Show Source):
You can put this solution on YOUR website!John sold you a candy bar for $1.00 that he bought for only 25 cents. What was the percent of increase?
Quantity increase 0.75
Percent increase : 0.75/0.25 = 300%
======================================
Cheers,
Stan H.
Question 568320: 1.An executive invests $25,000, some at 6% and some at 5% annual interest. If he receives an annual return of $1380, how much is invested at each rate?
2.A restaurant has fixed costs of $148.75 per day and an average unit cost of $4.75 for each meal served. If a typical meal costs $6, how many customers must eat at the restaurant each day for the owner to make a profit?
3.A machine to manufacture fasteners has a setup cost of $1,100 and a unit cost of $0.003 for each fastener manufactured. A newer machine has a setup cost of $1,450 but a unit cost of only $0.0025 for each fastener manufactured. Find the break point. (Round your answer to the nearest whole unit.)
Answer by mananth(10539) (Show Source):
You can put this solution on YOUR website!1.An executive invests $25,000, some at 6% and some at 5% annual interest. If he receives an annual return of $1380, how much is invested at each rate?
Investment Part I 5.00% per annum ----x
Investment part II 6.00% per annum ----y
The sum of the investments is $25,000.00
The sum of individual interests = $1,380.00
x+y 25000 ------------------------1
5.00% x+6.00% y = $1,380.00
Multiply by 100
5x+6y = $138,000.00 --------2
Multiply (1) by -5
we get
-5x-5y =-125000.00
Add this to (2)
y = $13,000.00
divide by 1
y = $13,000.00 investment at 6.00%
Balance $12,000.00 investment at 5.00%
CHECK
$12,000.00 @ 5.00% $600.00
$13,000.00 @ 6.00% $780.00
Total ---------------- $1,380.00
2.A restaurant has fixed costs of $148.75 per day and an average unit cost of $4.75 for each meal served. If a typical meal costs $6, how many customers must eat at the restaurant each day for the owner to make a profit?
Let number of meals served per day be x
cost = 148.75 + 4.75x
Price of meal = 6
Amount collected = 6x
for break even 148.75+4.75x=6x
148.75=6x-4.75x
148.75=1.25x
148.75/1.25=x
x= 119
more than 119 meals have to be served to make a profit
3.A machine to manufacture fasteners has a setup cost of $1,100 and a unit cost of $0.003 for each fastener manufactured. A newer machine has a setup cost of $1,450 but a unit cost of only $0.0025 for each fastener manufactured. Find the break point. (Round your answer to the nearest whole unit.)
Old Machine set up cost = 1100
variable cost = 0.003
let number of fasteners produced be x
Cost = 1100+0.003x
New Machine
cost = 1450+0.0025x
For finding the breakeven between the machines
1100+0.003x=1450+0.0025x
0.003x-0.0025x=1450-1100
0.0005x=350
x= 350/0.0005
x= 700,000 fasteners
m.ananth@hotmail.ca
Question 568243: Two investments totaling $27,500 produce an annuel income of $1,895. One investment yields 7% a year, while the other yields 4% per year. How much is invested at each rate?
Answer by mananth(10539) (Show Source):
You can put this solution on YOUR website!Investment Part I 7.00% per annum ----x
Investment part II 4.00% per annum ----y
The sum of the investments is $27,500.00
The sum of individual interests = $1,895.00
x+y=27500 ------------------------1
7.00%x+4.00%y=$1,895.00
Multiply by 100 ( to eliminate the %)
7x+4y=$189,500.00 --------2
Multiply (1) by -7
we get
-7x-7y =-192500.00
Add this to (2)
-3y=-$3,000.00
divide by-3
y = $1,000.00 investment at 4.00%
Balance $26,500.00 investment at 7.00%
CHECK
$26,500.00 @ 7.00% $1,855.00
$1,000.00 @ 4.00% $40.00
Total -------------------- $1,895.00
Question 568281: If a business borrows $15,000 and repays $21,300 in 4 years, what is the simple interest rate?
Found 2 solutions by stanbon, mananth:
Answer by stanbon(48502) (Show Source):
You can put this solution on YOUR website! If a business borrows $15,000 and repays $21,300 in 4 years, what is the simple interest rate?
--------
A(t) = P(1+rt)
21300 = 15000(1 + r*4)
1.42 = 1 + 4r
4r = 0.42
r = 0.1050 = 10.5%
======================
Cheers,
Stan H.
================
Answer by mananth(10539) (Show Source):
You can put this solution on YOUR website!I = P*R*N
where P= principal amount=15000
r= rate of interest = r
n= number of years = 4
Interest = Amount - Principal
Interest = 21300-15000=6300
6300 = 15000*4*r
6300/(15000*4)=r
r= 0.105
in percent it will be 10.5
Question 568025: class 12l of 12%alcahol solutioni mixxed with a 20% alcahol solution to get a 14% solution how many liters of 20% solution are needed
Answer by stanbon(48502) (Show Source):
You can put this solution on YOUR website!class 12L of 12% alcahol solutioni mixxed with a 20% alcahol solution to get a 14% solution how many liters of 20% solution are needed
------
alcohol + alcohol = alcohol
0.12*12L + 0.20x = 0.14(121+x)
------
Multiply thru by 100
12*12L + 20x = 14*12L + 14x
6x = 2*12L
x = (1/3)(12L)
x = 4 L (amt of 20% solution needed)
=======================================
Cheers,
Stan H.
Question 567881: Tom had twice as much as lisa. Tom spent $15, lisa had 2/3 of what tom had left. How much did both have altogether at first?
Answer by lwsshak3(2905) (Show Source):
You can put this solution on YOUR website!Tom had twice as much as lisa. Tom spent $15, lisa had 2/3 of what tom had left. How much did save altogether at first?
**
let x=$ lisa had at first
2x=$ Tom had at first
..
(2x-15)*2/3=x
4x-30=3x
x=30
2x=60
ans:
Both altogether at first had $60+$30=$90
Question 567749: 3. In 2001, Home Depot’s sales amounted to $60,700,000,000. In 2005, its sales were $71,200,000,000.
Write Home Depot’s 2001 sales and 2005 sales in scientific notation.
You can find the percent of growth in Home Depot’s sales from 2001 to 2005 by following these steps:
• Find the increase in sales from 2001 to 2005.
• Find what percent that increase is of the 2001 sales.
What was the percent growth in Home Depot’s sales from 2001 to 2005? Do all your work by using scientific notation (Round your answer to the nearest thousandth).
How do I get a paid tutor?
Answer by KMST(576)  (Show Source):
You can put this solution on YOUR website!$60,700,000,000=$6.07(10,000,000,000)=$ 
$71,200,000,000=$7.12(10,000,000,000)=$ 
• Find the increase in sales from 2001 to 2005.
$ -$ =$  =$10,500,000,000
• Find what percent that increase is of the 2001 sales.
If that percentage is  ,
So,  = approx. 17.298
I have seen that some of the free tutors in this website will help you for a fee, too. I have also seen advertised paid tutors on this website.
There may be tutoring agencies operating where you live. There may be local tutors advertising in supermarket bulletin boards, other local boards, local newspapers, and various websites. I suspect face-to-face tutoring works best, but some tutor may have developed a comparably efficient way to do it online.
NOTE: If you enter, in this website, a thank you note for my response, the thank you message only shows online, but it also triggers an email to me, with the message plus the email address you registered with. If a thank you note includes a further question (or ten further questions), I usually email an answer (for free). However, I am not presently set up for efficient online tutoring. This is currently my hobby, but I still have a full-time-plus day job.
Question 567823: Desa invested a certain amount of money at 4% interest and $1500 more than that amount at 7%. Her total yearly interest was $435. How much did she invest at each
rate?
Answer by solver91311(12114) (Show Source):
Question 567632: how to find the balance when you have $20,000 deposit earning 3.5% compound quarterly, after 10 years
can you give me the steps please i understand how to do principal earning but i don't get deposit earning
Answer by ankor@dixie-net.com(12680) (Show Source):
You can put this solution on YOUR website!how to find the balance when you have $20,000 deposit earning 3.5% compound quarterly, after 10 years
:
The compound interest formula: 
Where:
A = amt after t yrs
P = initial amt (principal)
r = interest rate in decimal form
n = no. of compounding periods per year
t = no. of yrs
:
In this problem
find the value of 1.00875^40 on a calc
A = 20000*1.41691
A = $28,338.18 after 10 yrs
Question 567642: Betsy a retiree, requires $5000 per year in extra income.she has $60000 to invest and can invest in B-rated bonds paying 13% per year or in a certificate of deposit paying 3% per year. How much money should be invested in each to realize exactly $5000 in interest per year?
Answer by Earlsdon(6098) (Show Source):
You can put this solution on YOUR website!Let x = the amount Betsy will invest in the B-rated bonds paying 13% per annum.
The remaining amount, $60,000-x, she will invest in the certificate of deposit paying 3% per annum.
We can express the earnings on these two investments, after converting the percentages to their decimal equivalents, as:
0.13x+0.03(60000-x) and this is to earn a total of $5,000
Now we can write the necessary equation to solve for x.
0.13x+0.03(60000-x) = 5000 Simplify.
0.13x+1800-0.03x = 5000 Combine the x-terms.
0.1x+1800 = 5000 Subtract 1800 from both sides.
0.1x = 3200 Divide both sides by 0.1
x = 32000
So Betsy needs to invest $32,000 in the B-rated bonds paying 13% interest and the remainder ($60,000-$32,000 = $28,000) in the certificate of deposit paying 3% interest to obtain $5,000 in interest per annum.
Question 567538: A car dealer, at a year-end clearance, reduces the list price of last year's models by 15%. If a certain four-door model has a discounted price of $8000, what was its list price? how much can be saved by purchasing last year's model?
Answer by MNSue(6)  (Show Source):
Question 567549: Laura works at a sporting goods store. She earns a 6% commission on all sales. How much commission does Laura earn on a $300 sale?
Answer by MNSue(6) (Show Source):
Question 567567: A builder of tract homes reduced the price of a model by 15%. If the new price is $425,000, what was its original price? How much can be saved by purchasing the model?
Answer by MNSue(6) (Show Source):
Question 567540: A college book store marks up the price that it pays the publisher for a book by 35%. If the selling price of a book is $92.00, how much did the bookstore pay for the book?
Answer by unlockmath(1120)  (Show Source):
You can put this solution on YOUR website!Hello,
We can set this up as an algebra problem:
x represents the price of the book paid to the publisher.
x + .35x = 92
Solve for x
1.35x=92
x= approx $68.15
Make sense?
RJ
www.math-unlock.com
Question 567450: Two investments earn an annual income of $478.40. One investment earns an annual simple interest rate of 6.5%, and the other investment earns an annual simple interest rate of 5.4%. The total amount invested is $7,800. How much is invested in each account?
Answer by mananth(10539) (Show Source):
You can put this solution on YOUR website!Investment Part I 6.50% per annum ----x
Investment part II 5.40% per annum ----y
The sum of the investments is $7,800.00
The sum of individual interests = $478.40
x+y=7800 ------------------------1
6.50%x+ 5.40%y= $478.40
Multiply by 100
6.5x+5.4y= $47,840.00 --------2
Multiply (1) by -6.5
we get
-6.5x-6.5y= -50700.00
Add this to (2)
0x-1.1y =-$2,860.00
divide by-1.1
y = $2,600.00 investment at 5.40%
Balance $5,200.00 investment at 6.50%
CHECK
$5,200.00 @ 6.50% $338.00
$2,600.00 @ 5.40% $140.40
Total -------------------- $478.40
Question 567490: Marya invests $9000 for 4 years in a bank that pays 3% annual interest. What is the average value of her account over this time period if interest is compounded continuously
Answer by nyc_function(2626)  (Show Source):
You can put this solution on YOUR website!The link below will show you how to solve your math question.
http://www.mathwarehouse.com/compound-interest/continuously-compounded-interest.php
Question 567492: You have $68.00 and you must find the percent that you subtract from that number to get $35.00.
Answer by nerdybill(5403)  (Show Source):
You can put this solution on YOUR website! You have $68.00 and you must find the percent that you subtract from that number to get $35.00.
.
Let x = percent
then
68 - 68x = 35
-68x = -33
x = (-33)/(-68)
x = 0.485
answer: 48.5%
Question 567483: How much will be in someone's account at the end of 3 years if they deposit $700 and the simple interest is 5% per year?
Answer by stanbon(48502) (Show Source):
You can put this solution on YOUR website!How much will be in someone's account at the end of 3 years if they deposit $700 and the simple interest is 5% per year?
---------------
A(t) = P(1 + rt)
-----
A(3) = 700(1 + 0.05*3) = 700*1.15 = 805
===========================================
Cheers,
Stan H.
==========
Question 567320: If we need to bill $509,375 after subtracting a 10% discount, how much does the original total bill need to be?
Answer by Maths68(1140) (Show Source):
You can put this solution on YOUR website!Let
Original bill = $x
10% of x = 10/100 (x)
10% of x = 1/10 (x)
10% of x = x/10
Bill = original bill - 10% discount
509375=x-x/10
509375=(10x-x)/10
10* 509375=(10x-x)
5093750=9x
5093750/9=9x/9
565972.20=x
x=565972.20
Original bill = $565972.20
Question 567339: A salary after a 4.5% increase, if the original salary is x dollars
Answer by Maths68(1140) (Show Source):
You can put this solution on YOUR website!Salary = x dollars
Increase =4.5% of x
Increase =(4.5/100)x
Increase =0.045x
Salary after increase = Salary Increase + Salary
Salary after increase = 0.045x + x
Salary after increase = 1.045x
Example
========
Let Salary = 4000
4.5% of 4000 = 4.5/100(4000)
4.5% of 4000 = 4.5(40)
4.5% of 4000 = 4.5(40)
4.5% of 4000 = 180
Salary after increase = 180 + 4000
Salary after increase = 4180
Now put salary in the following formula
Salary after increase = 1.045x
Salary after increase = 1.045(4000)
Salary after increase = 4180
Question 567027: If you borrow $2000 and charged 7.0% interest compounded monthly and pay the principal interest in full after 72 weeks. a. how much money will you owe? b. how much interests will they make off the loan! can you walk me through the problem?
Answer by mananth(10539) (Show Source):
You can put this solution on YOUR website!Principal P = 2000
Amount= A
years=n 6.00
compounded 12 times a year t
Rate = 7.00 0.01
Amount = P*((n+r)/n)^n*t
Amount =2000*(1 +0.01)^ 6*12
Amount =2000*(1 +0.01)^72
2000 *( 1.01 )^ 72
Amount = 3040.21
Interest = 3040 - 2000 = $1,040
Question 567015: I have trouble answering this simple interest question. A loan company advertises that you only pay 8 cents per day for each $100 borrowed. If a person borrows $500 for 90 days, what amount must the person repay and what annual simple interest rate is the loan company actually charging?(use a 360-day year)
Answer by stanbon(48502) (Show Source):
You can put this solution on YOUR website!A loan company advertises that you only pay 8 cents per day for each $100 borrowed. If a person borrows $500 for 90 days, what amount must the person repay and what annual simple interest rate is the loan company actually charging?(use a 360-day year)
------
8 cents per day implies 8*360 = $28.80 per year
Actual simple interest rate = 28.80/100 = 28.8%
-----------------------------
If borrow 500 for 90 days you pay 5*(8 cents)*90 = $36.00
============================================================
Using the formula I = Prt you get:
I = 500*0.288(90/360)
I = 500*0.288(1/4)
I = 500*0.072
I = $36.00
Cheers,
Stan H.
Question 566775: I get these questions wrong every time. they are the only only ones i miss, and they are keeping me from finishing this class! ive tried both asnswers in () but neither is right. what do i do to solve these? ):
1a) Kim’s Garage borrows $7300 at 10% for 30 days. Find the amount of simple interest that is due.
$ (60.83) (730.00)
1b)What is the total amount that must be repaid after 30 days?
$ (7360.83) (8030.00)
2a)A company borrows $5000 at 6% for 60 days. Find the amount of simple interest that is due.
$ (50.00) (300.00)
2b)What is the total amount that must be repaid after 60 days?.
$ (5050.00) (5300.00)
Found 2 solutions by scott8148, bucky:
Answer by scott8148(5879)  (Show Source):
You can put this solution on YOUR website!full disclosure: I am not a financial person
I think that you are supposed to use 360 days as a year
___ so 30 days is 1/12 of a year
10% simple interest on $7300 is $730
___ but the loan is for 1/12 of a year, so the interest is 1/12 or $60.83
the repayment amount is the loan amount plus the interest ___ $7360.83
the 2nd question is the same technique, except the interest rate is 6% and the time is 1/6 of a year
Answer by bucky(2097) (Show Source):
You can put this solution on YOUR website!Maybe by discussing this loan a little bit, I can help you to find your problem.
.
Let's start with this ... what does a 10% loan mean. It sure doesn't mean that in a day, a week, or a month you owe 10% interest on the principal. Usually when you see the interest rate on a loan, that rate involves the cost of borrowing the principal for a year. And in finance, usually a year is considered to be 360 days, not 365 days.
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So for the first problem, we can find out how much Kim's garage owes in interest each day for 30 days. Let's start by dividing the 10% rate of interest by 360 days to determine the rate of interest each day. 10% is equivalent to a rate of 0.10 per year. So the daily rate of interest is:
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0.10/360 = 0.0002777777778
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(If you divide 0.10 by 360 on a calculator you may see the answer as:
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2.777777778^(-04)
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The exponent means take the number that you see and move its decimal 4 places to the left so that you have as the answer 0.0002777777778).
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So that is the daily rate of interest. And for the 30 days that Kim's garage borrows the money the rate for 30 days is found by multiplying the 30 days times the daily rate as follows:
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30 * 0.0002777777778 = 0.008333333333 [or its equal of 8.333333333^(-03)]
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That's the rate of interest for the full 30 day period. If you multiply that rate times the $7300 principal you get the answer. The interest owed will be:
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$7300 * 0.008333333333 = $60.83333333
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and this rounds to $60.83 of interest.
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After the 30 day period, Kim's garage is required to pay back the principal of $7300 plus the interest of $60.83 for a total payback of $7360.83
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The second problem is identical to the first problem, with the exception that the figures change.
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When the 6% or .06 annual rate of interest is divided by 360 days in the year, the daily rate of interest turns out to be: 0.0001666666667. Since the loan is for 60 days multiply this daily rate by 60 to get a rate of 0.01 for the 60 days. The amount of interest for the 60 day loan is then found by multiplying the principal of $5,000 times 0.01 which results in $50.00 of interest. Therefore, at the end of the 60 days, the company must return the principal plus the interest, or $5,000 + $50 = $5050 is due.
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I hope this information helps you to find where you were having difficulty.
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Question 566777: The friendly National Bank holds $50 million in reserves at its Federal Reserve District Bank. The required reserves ratio is 12 percent.
a. If the bank has $600 million in deposits, what amount of vault cash would be needed for the bamk to be in compliance with the required reserves ratio?
b. The Friendly National Bank holds $10 million in vault cash, determine the required reserves ratio that would be needed for the bank to avoid a reserves deficit.
Answer by solver91311(12114) (Show Source):
Question 566781: Assume that there are two banks, A and Z, in the banking system. Bank A receives a primary deposit of 600,000, and it must keep reserves of 12 percent against deposits. Bank A makes a loan in the amount that can be safely lent.
a. Show that Bank A's balance sheet of assets and liabilities would look like immediately after the loan.
b. Assume that a check is drawn against the primary deposit made in Bank A and deposited in Bank Z. Show what the balance sheet of assets and liabilities would look like for each of the two banks after the transaction has taken place.
c. Now assume that Bank Z makes a loan in the amount that can be safely lent against the funds deposited in its bank from the transaction described in (b). Show what Bank Z's balance sheet of assets and liabilities would like after the loan.
Answer by solver91311(12114) (Show Source):
Question 566784: The SIMPLEX financial system is characterized by a required reserve ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages.
a. What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier?
b. How would your answer in (a) change if the reserve requirement had been 9 percent?
Answer by solver91311(12114) (Show Source):
You can put this solution on YOUR website!
Again, you are asking accounting questions. Go to an Accounting Homework Help site.
John
My calculator said it, I believe it, that settles it
Question 566779: How long, in years, will it take an investment of $1,000 to double to $2,000 at annual simple interest rate of 3%?
Answer by solver91311(12114) (Show Source):
Question 566778: Assume that Banc One recieves a primary deposit of $1 million. The bank must keep reserves of 20 percent aginst its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.
Answer by solver91311(12114) (Show Source):
You can put this solution on YOUR website!
Preparing a balance sheet is an accounting problem, not an algebra problem. Try Accounting.com or some such.
John
My calculator said it, I believe it, that settles it
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