652 CHAPTER 10 Consumer Mathematics 17. What is 17% of 540? 91.8 18. Tipping At Mamason’s, Anuj and Renuka’s bill comes to $52.19, pretax. If they wish to leave a 15% tip on the pretax amount, how much should they tip the waiter? $7.83 19. Increased Membership If the number of people in your yoga club increased by 20% or 8 people, what was the original number of people in the club? 40 people 20. Jelly Beans A jar contains 1050 jelly beans. Of these jelly beans, 126 are green. What percent of the jelly beans in the jar are green? 12% 10.2 In Exercises 21–24, determine the missing quantity by using the simple interest formula. 21. p r t i $4400, 3.2%, 4 years, ? = = = = $563.20 22. p r t i $2700, ?, 100 days, $37.50 = = = = 5.0% 23. p r t i ?, 5.5%, 3 years, $280.50 = = = = $1700 24. p r t i $3600, 3 %, ?, $555.75 1 4 = = = = 4.75 years 25. Roof Loan To replace the roof on his house, Matt borrows $7500 from his brother. The loan was for 24 months and had a simple interest rate of 2.5%. Determine the amount Matt paid his brother on the maturity date of the loan. $7875 26. Bank Loan Nikos borrowed $6000 for 24 months from his bank using an 11 %1 2 discount note. a) How much interest did Nikos pay the bank for the use of the money? $1380 b) How much did he receive from the bank? $4620 c) What was the actual rate of interest, to the nearest tenth of a percent? 14.9% 27. Bakery Loan On April 1, The Red Velvet Bakery signed a $8400 bank note with a simple interest rate of 4.5% for 180 days. The company made a partial payment of $2900 on June 1. How much will the bakery owe on the maturity date? $5646.82 28. Garage Loan On May 15, The Underground Repair Service Garage signed a $6700 bank note with a simple interest rate of 6.1% for 210 days. The company made a partial payment of $3250 on August 31. How much will the garage owe on the maturity date? $3634.36 10.3 29. Comparing Compounding Periods Determine the amount and the interest when $5000 is invested for 5 years at a 6% interest rate a) compounded annually. $6691.13; $1691.13 b) compounded semiannually. $6719.58; $1719.58 c) compounded quarterly. $6734.28; $1734.28 d) compounded monthly. $6744.25; $1744.25 e) compounded daily (use n 360 = ). $6749.13; $1749.13 30. Certificate of Deposit Seth invests $2500 in a 2-year certificate of deposit (CD) that pays 1.75% interest rate compounded monthly. What will be the value of the CD in 2 years? $2588.98 31. Effective Annual Yield Determine the effective annual yield, to the nearest hundredth of a percent, of an investment if the interest is compounded daily at an annual rate of 5.6%. 5.76% 32. Present Value How much money should Maggie invest in a 5-year CD that pays a 3.1% interest rate compounded quarterly so the CD will be worth $5500 in 5 years? $4713.10 10.4 33. Car Loan Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and financed the balance with a 60-month fixed installment loan with an APR of 5.0%. a) Determine the down payment. $7800 b) Determine the amount financed. $18,200 c) Determine the finance charge. $2407.39 d) Determine the monthly payment. $343.46 34. Office Equipment Donna is starting a consulting business and purchased new office equipment and furniture selling for $13,220. Donna paid 20% as a down payment and financed the balance with a 36-month installment loan with an APR of 6%. a) Determine the down payment. $2644 b) Determine the amount financed. $10,576 c) Determine the finance charge. $1006.73 d) Determine the monthly payment. $321.74 35. Financing an Airplane Deepankar bought a new Piper Sport airplane for $140,000. He made a 40% down payment and financed the balance with the dealer on a 60-month installment loan. The monthly payments were $1624. a) Determine the down payment. $56,000 b) Determine the amount to be financed. $84,000 c) Determine the total finance charge. $13,440 d) Determine the APR. 6.0% 36. Repaying a Loan Early Bill has a 48-month installment loan with a fixed monthly payment of $176.14. The amount borrowed was $7500. Instead of making his 24th payment, Bill is paying the remaining balance on the loan. a) Determine the APR of the installment loan. 6.0%
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