[blueonez21]

1. Louise buys a computer set from a merchant who offers $10000 at the end of 60 days. She wishes to pay immediately and the merchant offers to compute the required amount on the assumption that money is worth 10% ordinary simple interest. What is the required amount?

2. What is the principal amount if the amount of interest at the end of 1 1/2 year is $2200 for a simple interest of 5% per annum?

3. A time deposit of $50000 for 31 days earns $200 on maturity date after deducting the 10% withholding tax on interest income. Find the rate of interest per annum.

4.the price tag of a certain commodity is for 100 days.. If paid in 30 days, there is a 3% discount. What is the simple interest paid?

5. A price tag of $1000 is specified if paid within 50 days but offers a 3% discount for cash in 20 days. Find the rate of interest.

6. What is the formula on how to get the "banker's discount"?

7. In buying a television, the buyer was offered the options of paying $1200 cash at the end of 30 days or $1500 at the end of 120 days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120 days.

[pready]

Interest = Principal * Rate * Time

Time will be number of days / 360 days or number of months / 12 months

[blueonez21]

Okay.. thanks...

I have answered all of the problems except for #5 and #7.. :((