Simple and Compound Interest and depreciation review questions 2

Dwayne

1)      $5550 is invested at 7% per annum for 6 years

a) What is the simple interest payable?

b) Find the amount accruing for the investment

 

2)      Miss Tameca borrowed $16 250 from a lending establishment at 14.5 % per annum simple interest for 5 years

Find:

a)   The sum of money paid in interest to the establishment

b)      The total amount of money repaid to the establishment

c)  The value of each monthly installment

 

3)      Find the principal that will earn $566 in 5 years at 6% simple interest

 

4)      Mr. Mc Clayne took a loan from a bank at 12.5% per annum for 10 months and repaid $435.25 simple interest. Find the amount of money Mr. Mc Clayne borrowed from the bank.

 

 

5)      Calculate the rate per cent per annum if $758 interest is paid when $1555 is invested for 4 years

 

6)      The simple interest on $30 000 for 9 ½ years is $10 000. Calculate the rate per cent per annum.

 

 

7)      Find the number of years in which $6000 invested at 12% per annum will earn $1800

 

8)       Calculate the compound interest earned when $18,650 is invested for 5 years at 13% per annum

 

9)      Calculate the book value and depreciation of a home stereo costing $55,700 after 5 years depreciating at 6% per annum

 

10)   A man bought an item for $40 360. After using it for 5 years he decided to sell it for a dealer. The dealer estimated a depreciation of 14% for the first year of its use and a further 14% on its reduced value for the other 4 years.

a)      Calculate the value of the item after 5 years

b)      Express the value of the item after 5 years as a percentage of the original value

c)      Express the depreciation after the 5 year period as a percentage of the original value

 

 

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