a) Enrique borrowed $3600 to put a down payment on a motorcycle. The loan had a simple interest rate of 8% for 2 years. find the amount of interest he will pay on the loan.
b) Present value is best defined as:? options are
?the amount that must be invested now and compounded at a specified rate and time to reach a specified future value
?the amount of a specified future value compounded at a specified rate which can be invested currently
?the amount that must be invested per year and compounded at a specified rate and time to reach a specified present value
?all of these are appropriate definitions for present value
c) ?Jorge makes a simple discount note with a face value of $6000.00, a term of 240 days, and a 10% discount rate. Find the discount.
d) Barbara knows that she will need to buy a new car in 4 years. The car will cost $15,000 by then. How much should she invest now at 6%, compounded quarterly, so that she will have enough to buy a new car?