Compound interest and simple interest, homework help

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Zvvva

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Mathematics

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They are compound interest and simple interest problems. As well as percent reduction. You can find problems like these on youtube and other sources.

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Solve each problem. 1) (10 points) A diamond ring was reduced from $999.99 to $399.99. Find the percent reduction in the price. 2) (10 points) Sally borrowed $600 for 90 days at 4%. What is the interest? 3) (20 points) Some really nice beach towels that usually sell for $24.99 each are on sale over Memorial Day weekend at 25% off. In addition, the store has distributed a coupon good for an additional 10% off your entire purchase. How much will it cost to buy four towels, not including tax? 4) (20 points) How much would you have to invest into a 5 year certificate of deposit paying 2.3% compounded weekly to make it worth $4500 at the end of the term? 5) (20 points) To fence their backyard, Juan and Cheryl choose fence at $8.49 per foot. They need 194 1 feet of fence and the tax rate is 7.6%. The financing is for 2 years with monthly payments of 2 $72.12. What is the interest rate that was supposedly given to you? 6) (20 points) Two students each have $1000 to invest from their summer jobs. Barok invests his money in an account that earns simple interest at annual interest rate of 5%. Carrie invests her money in an account that earns 4.8% interest per year compounded monthly. Find how much money each student has in his or her account after: a) 10 years b) 30 years
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1. A diamond ring was reduced from $999.99 to $399.99. Find the percent reduction
in the price.
Solution:
First we have the change in the price, which was 999.99-399.99=$600
Then the calculated price is divided by the original price and multiplied by 100% to
find the percent reduction.
(600/999.99)*100%=60.0006%
2. Sally borrowed $600 for 90 days at 4%. What is the interest?
Solution:
If 4% is annual interest rate we will use formula I = Prt, where I is the simple interest,
P is the principal, r is the annual interest rate and t is time in years
90 days in years will be 90/365=0.2465 years
I=600*0.04*0.2465=$5.91
3. Some really nice beach towels that usually sell for $24.99 each one are on sale over
Memorial Day weekend at 25% off. In addition the store has distributed a coupon
good for an additional 10% off your entire purchase. How much will it cost to buy
four towels, not including tax?
Solution:
With 25% off discount, each towels’ price will be 24.99*0.75=$18.7425
With the additional 10% off discount the price will be 18.7425*0.9=16.86825$
The cost to buy four towels, not including tax will be 16.86825*4=67.473
So we can say that the total cost to buy 4 towels will be $67.47
4. How much would you have to invest into a 5 year certificate of deposit paying 2.3%
c...