Jeeves Posted May 18, 2005 Share Posted May 18, 2005 Q1 The C.I. earned in two consecutive years on a deposit is $490 and $ 588. Assuming annual compounding find the rate of interest. A 22% B 18% C 15% D 10% E 20% Q2 Of the following, which is the greatest amount of money that a person can borrow at an annual interest rate of 6.5% if the loan and interest are to be aid off at the end of one ear with the money from a check for $1600? A $2460 B $1704 C $1520 D $1500 E $1040 Quote Link to comment Share on other sites More sharing options...
mbakid Posted May 18, 2005 Share Posted May 18, 2005 Q1 The C.I. earned in two consecutive years on a deposit is $490 and $ 588. Assuming annual compounding find the rate of interest. A 22% B 18% C 15% D 10% E 20% Q2 Of the following, which is the greatest amount of money that a person can borrow at an annual interest rate of 6.5% if the loan and interest are to be aid off at the end of one ear with the money from a check for $1600? A $2460 B $1704 C $1520 D $1500 E $1040 interest on interest = 98 hence rate of interest. = 98/490=20% let the principal be P P(1.065)==1600 =>1600/1.065=1500 Quote Link to comment Share on other sites More sharing options...
scoot Posted May 18, 2005 Share Posted May 18, 2005 Q1) 588-490 = 98 20% 490= 98. Rate of interest = 20%. Q2) Ans :d 1500 *6.5/100~ 1600 Quote Link to comment Share on other sites More sharing options...
arjmen Posted May 18, 2005 Share Posted May 18, 2005 Agreed with E and D in that order Quote Link to comment Share on other sites More sharing options...
Jeeves Posted May 18, 2005 Author Share Posted May 18, 2005 Q1 OA is E Q2 OA is D Quote Link to comment Share on other sites More sharing options...
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