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Exercise 8.1, Solution 1:
a. 0January 01, 2017: 1st day of the year (using the table)
February 19, 2017: 50th day of the year (using the table)
Difference = 50 − 1 = 49 days
49
Therefore, the number of days in the given time period = 49 days. In terms of years, t = = 0.13 years
365
b. February 26, 2018: 57th day of the year (using the table)
December 02, 2018: 336th day of the year (using the table)
Difference = 336 − 57 = 279 days
279
Therefore, the number of days in the given time period = 279 days. In terms of years, t = = 0.76 years
365
c. November 23, 2016: 327th day of the year (using the table)
December 31, 2016: 365th day of the year (end of the year)
In 2016 we have 365 − 327 = 38 days
April 04, 2017: 94th day of the year (using the table)
In 2017 we have 94 days
132
Therefore, the number of days in the given time period = 38 + 94 = 132 days. In terms of years, t = =
365
0.36 years
d. August 25, 2015: 237th day of the year (using the table)
December 31, 2015:365th day of the year (end of the year)
In 2015 we have 365 − 237 = 128 days
September 06, 2016: 249th day of the year (using the table)
But 2016 is a leap year, therefore September 06, 2016 will be 249 + 1 = 250th day of the year since
February 29 will be day 60.
In 2016 we have 250 days.
378
Therefore, the number of days in the given time period = 128 + 250 = 378 days. In terms of years, t =
365
=1.04 years
Exercise 8.1, Solution 3:
200
a. I = Prt = (200) (0.10) ( ) = $10.958904... = $10.96
365
Therefore, amount of interest earned on the given investment = $10.96.
b. From the days table,
540
I = Prt = (5000) (0.015) ( ) = $110.958904... = $110.96
365
Therefore, Aidan would have to pay an interest of $110.96 at the end of the time period.
Exercise 8.1, Solution 19:
0.098
First rate: r = 9.8% per annum = 0.098 = = 0.008166… per month = 0.82% per month
12
Second rate: r = 0.85% per month
Therefore, the second rate is more attractive for a lender of a loan because it is higher and hence results in a
higher interest for a given amount of loan.
Exercise 8.1, Solution 21:
Rate of interest charged by the Angelo to Alisa r = 6% p.a = 0.06
18
t = 18 months = = 1.5 years
12
I = Prt = (2500) (0.06) (1.5) = $225.00
At the end of 18 months, Alisa should pay Angelo $225.00 in interest.
Rate of interest charged by the bank to Angelo = 4.6% per annum = 0.046
Interest charged by the bank = (2500) (0.046) (1.5) = $172.50
210
t = 210 days = ´12 months
365
r = 0.4% per month = 0.004
210
Therefore, we have interest earned I = Prt = (5200) (0.004) ( ×12 ) = $143.605479... = $143.61
365
For Tabita,
r = 4.3% per annum = 0.043
210
t = 210 days = years
365
210
Therefore, we have interest earned I = Prt = (5200) (0.043) ( ) = $128.646575... = $128.65
365
143.61 – 128.65 = $14.96
Therefore, Aba earned $14.96 more interest.
Exercise 8.1, Solution 25:
8 2
t = 8 months = = years
12 3
2
First interest I = Prt = (3500) (0.046) ( ) = $107.333333... = $107.33
3
Second interest I = Prt = (7500 − 3500) (0.004) (8) = $128.00
Therefore, total interest earned from both investments = 107.33 + 128.00 = $235.33
Exercise 8.1, Solution 27:
æ 180 ö 180
t = 180 days = ç ´12 ÷ months = years
è 365 ø 365
180
Interest at 11% per annum rate: I = Prt = (2600) (0.11) ( ) = $141.041096...
365
æ 180 ö
Interest at 1.2% per month rate: I = Prt = (2600) (0.012) ç ´12 ÷ = $184.635616...
è 365 ø
184.635616… – 141.041096… = $43.594520… = $43.59
Therefore, if the rate was 1.2% per month, $43.59 more interest would have to be paid.
Exercise 8.1, Solution 29:
P=$5,000 ; t = 0.5
Assuming the simple interest rate is 1% p.a., r = 0.01