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Decide which formula to use and than solve A. Sara borrows $1200 at 8 % simple...

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Basic Math

Decide which formula to use and than solve

A. Sara borrows $1200 at 8 % simple interest. If the loan is for5 months, what is the total amount he pays back (This is sometimescalled the maturity value)?

B.Sara later decides to deposit $9000 at 7.5% per yearcompounded annually, and would like to know how much she will haveafter 10 years.

C. Sara's husband wants to invest $1000 at the end of eachquarter at 9% compounded quarterly, and would like to know (1) howmuch will he have after 10 years? (2) How much interest will heearn after 10 years?

D. Sara is considering depositing $600 at the end of eachsemi-annual period, for 5 years earning interest of 8%. She wouldlike to know how large a one-time lump sum deposit she could make,at the same rate, to have the same amount of money after 5years.

Answer & Explanation Solved by verified expert
4.2 Ratings (697 Votes)
A The amount to be paid back by Sara is 5000 5000 8100512 516667 on rounding off to the nearest cent The formula is principal interest and interest principal rate of interest time in years B The amount that Sara    See Answer
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