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Jake borrowed $6,500 for 18 months at 5.05%. How much interestwill he pay?Sarah borrowed $1,000 on March 12, 2007 and repaid it onSeptember 4, 2010. For how many days was the loan outstanding?Page 2 of5 AA loan of $1,100 can be repaid in 8 months by paying theprincipal sum borrowed plus $44 in interest. What was the rate ofinterest charged?4. How many days would it take for$1,500 to earn $20.96 at 8.5%?5. What amount of money would earn$54.69 in 3 months at 8.75%?Helen borrowed $500 at 4% from her Mom on April 4, and promisedto repay the money in 90 days.What is the due date?How much will she owe her Mom on that date?Page 3 of5 ADave borrowed money from Steve at 8% for 9 months. He now owesSteve $424. How much did be borrow?Debt payments of $600 each are due 3 months and 6 months fromnow respectively. If interest is at 10%, what single payment isrequired to settle the debt today?FORMULA SHEETi = j / mI = Prtt = I / PrP = I / rtS = P(1 + i)nf = (1 + i)m- 1n = ln (S / P)ln (1 + i)Sn = R[(1 + p)n- 1]pR= Sn[(1 + p)n- 1] / pn = ln [1 + pSn/R]ln (1 + p)Sn(due) = R[(1 + p)n- 1](1+ p)pn = ln [1 +[pSn(due) / R(1 + p)] ln(1 + p)= -ln[1 - (p[1 + p]dAn(def))/R] ln(1 + p)An(def) = R [1 - (1+ p)-n] p(1 + p)dA = R / pm = j / iS = P(1 + rt)r = I / PtP = S / (1 + rt) = S(1 + i)-nc = # of compoundings/# of paymentsp = (1 + i)c- 1i = [S / P] 1/n- 1An = R[1 - (1 + p)-n]pR= An[1 - (1 + p)-n] / p= -ln [1 - pAn/R] ln (1 + p)An(due) = R[1 - (1 + p)-n](1 + p)pn = -ln[1 - [pAn(due) / R(1 +p)]ln(1 + p)= -ln{R[1-(1 + p)-n] / pAn(def)}ln(1 + p)Sn(def) = SnA(due) = (R / p)(1 + p)