ex2.

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Exercise 2

simple interest

2.1 Calculate the amount (accumulated value) of a 800$ loan

The date due is 12.8.2005 and the interest rate is 16% (simple interest).
The loan was taken 25.3.2005. Use English method in calculation of time.
2.2 Calculate the value on 25.9.2006 of a non-interrestbearing note
with face value of 1200 $ and maturation date 15.1.2007.
Use French -US method in the calculation of time. Use bank discount with rate 12%.
Non-interestbearing note is a loan, where a loan taker pays
the whole sum written in the note (the face value) on the maturation date.
The interest is paid beforehand at the date of issue using bank discount.
2.3 Robert issued a non-interestbearing note in a bank with face value of 2000 $.
The bank discount rate was 9% and the maturation period was 90 days.
a) Calculate the sum Robert received from the bank
b) The bank sold the note to another bank 40 days after the date of issue.
Calculate the price, if the buyer bank wanted 10% interest for its investment
Answers:
2.1) 949.10 $

2.2) 1155.20 $

2.3a) 1955.62 $ b) 1972.97 $