Compute the missing amount for each of the following notes:
Principal Annual Interest Rate Time Total Interest
(a). $40,000 10% 2.5 years ??
(b). $120,000 ?? 9 months $7,200
(c) ?? 10% 90 days $1,500
(d). $40,000 9% ?? $1,200
a. | $10,000 |
b. | 8% |
c. | 60,000 |
d. | 4 months |
working note:
a.total interest = principal * rate * time
=>40,000 *10% *2.5 years =>$10,000.
b.rate = total interest / (principal * time) *100
=> $7,200 / (120,000 * 9/12 months) *100
=>8%.
c.principal = total interest / (rate*time))
=>1500 / (10%*90 days /360 days)
=>1500/ 0.025
=>$60,000.
d.time = total interest / (principal * rate) * 12 months
=>1200 / (40000*9%) *12 months
=>1200 / 3600 *12 months
=>4 months.
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