TIME
VALUE OF MONEY 3-7
PRACTICE EXERCISE 3.1
(Continued)
4.
If you borrow $350,000 for two years and have to pay back $413,000 in two years,
what is the simple interest rate you are being charged for the loan per year?
______%
5.
If the rate is 12% per annum (p.a.), what is the simple interest accrued over a 20 day
period within the same month on a $100 investment?
$_____________________
6.
If the rate is 7.5% p.a. on a $1,000 investment, what is the simple interest accrued
over the period 13/08/91 to 20/09/91 (dd/mm/yy)?
$_____________________