I have to complete this probem set
1.1. Find the simple interest on (a) a 90-day loan of € 500.00 at 8½%; (b) a 118-day loan of € 600.00 at 7%; 1.2. At what rate of simple interest will (a) €1,000.00 accumulate to €1,420.00 in 2 ½ years? (b) money double itself in 8 years? 1.3. How long will it take € 1,000.00 (a) to earn € 100.00 at 15% simple interest? (b) to accumulate to at least € 1,200.00 at 13½ % simple interest? 1.4. Find the accumulated value corresponding to an investment of €9,000 at annual 3% simple interest if a) The term of the transaction is 18 months. b) The term of the transaction is 30 days. c) The term of the transaction is 1 year. 1.5. What would be the final amount received, using the simple interest rule, if we invested : a) € 6,000 during 90 days at a 6% annual interest rate b) € 9,500 during 8 months at a 0.3% monthly interest rate c) € 15,000 during one year at a 3.5% annual interest rate 1.6. Find the present value corresponding to a future value of €9,000 at annual 3% simple discount if a) The term of the transaction is 18 months. b) The term of the transaction is 30 days. c) The term of the transaction is 1 year. 1.7. At 12¾ % bank discount, find the value today of (a) $1500 due in 9 months, (b) $10,000 due in 182 days. 1.8. Find the present value at 8% simple discount of $1000 due in 3 months. What is the simple discount? 1.9. Mr. Rose owes Mr. Chen $1000. Mr. Chen agrees to accept as payment a noninterest-bearing note for 90 days; the note can be immediately discounted at a local bank which charges a discount rate of 10%. What should the face value of the note be so that Mr. Chen will receive $1000 as proceeds? 1.10. What would be the amount received at the beginning of the period, using the simple discount rule, if we discounted with the following conditions: a) € 6,000 during 90 days at a 6% annual discount rate b) € 9,500 during 8 months at a 0.3% monthly discount rate c)
and I am going to use the following four formulae, are they correct?
FV = PV (1+r)n
PV = FV / (1+r)n
r = ( FV / PV )1/n - 1
n = ln(FV / PV) ln(1 + r)
Will Oxford nullify my offer?