Business Math and Statistical Measures
1. You make decision to take out the simple interest loan for $5000, at 7% yearly interest on date that unit 4 starts for you. If you repay loan on December 31st (at the end of current year).
i) How much do you pay total when you pay off loan?
ii) How much interest do you pay?
2. You make decision to take out $20000 simple interest loan at 4%, on date unit 4 started for you.
i) In 45 days you make decision to pay off $8000 of loan. Determine new principal? Describe how you got answer.
ii) 30 days after first payment, you pay another $6000. Determine the new principal? Describe how you got answer you did.
iii) 45 days after 2nd payment, loan comes due. How much do you require to pay then? Describe the reasoning.