Question

1. Calculate the present value on 3 August 2019 of $13,500 due on 3 November 2019 at a simple interest rate of 4% pa. Give your answer in dollars and cents to the nearest cent. This days between dates calculator may assist you. P = $ 2. Neddy invests $3,061 at 11% pa simple interest and this investment grows over time to $3,274. Calculate the time period (t) over which Neddy made the investment. Give your answer in days rounded to the nearest day. t = days

Answer 1

(1) Final Value of Investment = Original Principal + Interest = $ 13500

Simple Interest Rate = 4 % per annum and Tenure of Investment = 3 August to 2019 to 3rd November 2019 = 3 months or (3/12) = 0.25 years

Let the initial principal be $ P

Therefore, Interest = P x 0.25 x 0.04

P + P x 0.25 x 0.04 = 13500

1.01P = 13500

P = 13500 / 1.01 = 13366.3

NOTE: Please raise a separate query for the solution to the second unrelated question, as one query is restricted to the solution of only one complete question.