CH6.8 Interest Earned . On July 1 st , Mia deposited $5,000 in an MMDA that pays
ID: 2640699 • Letter: C
Question
CH6.8 Interest Earned. On July 1st, Mia deposited $5,000 in an MMDA that pays 4 percent interest annually. On October 31, Mia invested $3,000 in a three month CD that pays annual interest of 8 percent. At the end of the year, how much interest will Mia have earned, assuming she hasn't taken anything out of the money market deposit account? (each month has 30 days)
CH7.2 Identity Theft. According to the filled out form (from CH7.1), list where you are unprepared and how you can become prepared. Write your answers on the other side of the filled out form paper.
CH9.1 Origination Fee. Devlin needs to borrow $1,000 for the next year.
Bank South will give him the loan at 15 percent.
Sun Coast Bank will give him the loan at 8 percent with a $60 loan origination fee.
First National will give him the loan at 7 percent with a $95 loan origination fee.
CH9.1.a, b & c Determine the total interest and fees Devlin will be charged in each case.
CH9.1.d Which loan should Devlin choose?
CH9.2.a to h Amortization. Evelina has just borrowed $5,000 on a four-year loan at 8 percent simple interest. Complete the amortization table below for the first five months of the loan.
Payment Number
Beginning Balance
Payment Amount
Applied to Interest
Applied to Principle
New Balance
1
$5,000
$122
$33.33
$88.67
$4,911.33
2
a
$122
$32.74
b
$4,822.07
3
$4,822.07
C
d
$89.85
$4,732.22
4
$4,732.22
$122
e
$90.45
f
5
$4,641.77
$122
$30.95
g
h
.
CH9.2.i Add-On Interest Loan. How much interest did Evelina pay if she had made the same loan as an add-on interest loan?
CH9.2.j What is the difference between Evelina
Payment Number
Beginning Balance
Payment Amount
Applied to Interest
Applied to Principle
New Balance
1
$5,000
$122
$33.33
$88.67
$4,911.33
2
a
$122
$32.74
b
$4,822.07
3
$4,822.07
C
d
$89.85
$4,732.22
4
$4,732.22
$122
e
$90.45
f
5
$4,641.77
$122
$30.95
g
h
Explanation / Answer
CH6.8 Interest Earned
Considering year end as 31st Dec
Interest on MMDA = Amount*Interest*No. of Days/360
= $5000*4%*180/360
= $100
Interest on CD = Amount*Interest*No. of Days/360
= $3000*8%*61/360
= $40.67
CH7.2 Identity Theft
CH7.2 Identity Theft. According to the filled out form (from CH7.1), list where you are unprepared and how you can become prepared. Write your answers on the other side of the filled out form paper. - The full details not provided to answer the question.
CH9.1.
Interest Fees Total
a. Bank South 1000*15%
= 150 0 150
b. Sun Coast Bank 1000*8%
= 80 60 140
c. First National 1000*7%
= 80 95 175
d. Loan Devlin should choose is from Sun Coast Bank
CH9.2.a to h
a= 4,911.33
b= 89.26
c= 122.00
d= 32.15
e= 31.55
f= 4,641.77
g= 91.05
h= 4,550.72
CH9.2.i
Add on interest loan is a method of calculating interest whereby the interest payable is determined at the beginning of a loan and added onto the principal. The sum of the interest and principal is the amount repayable upon maturity.
Add on intesrst = Amount*year*Interst rate
= 5000*4*8%
= 1600
CH9.2.j Difference between Evelina