1) Kerry Stutsman has $500 in a saving account earning .45% interest. She is considering buying a 1-year certificate of deposit (CD) that pays 3.25% interest. What will be the annual difference in her interest earnings between the savings account and the CD?
2) On September 12, Jody went to Sunshine Bank to borrow $2300 at 9% interest. Jody plans to repay the loan on Jan. 27. Assume the loan is on ordinary interest. What interest will Jody owe on Jan. 27? What is the total amount Jody must repay at maturity?
3) May 3, 2010 Leven Corp. negotiated a short-term loan of $685,000. The loan is due October 1, 2010, and carries a 6.86% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date?
4) Bill Moore is buying a used Winnebago. His April monthly interest at 12% was $125. What was Bill's principal balance at the beginning of April? Use 360 days.