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1

Exercise 8.1, Solution 1:

a. 0January 01, 2017: 1st day of the year (using the table)

February 19, 2017: 50th day of the year (using the table)

Difference = 50 − 1 = 49 days

49

Therefore, the number of days in the given time period = 49 days. In terms of years, t = = 0.13 years

365

b. February 26, 2018: 57th day of the year (using the table)

December 02, 2018: 336th day of the year (using the table)

Difference = 336 − 57 = 279 days

279

Therefore, the number of days in the given time period = 279 days. In terms of years, t = = 0.76 years

365

c. November 23, 2016: 327th day of the year (using the table)

December 31, 2016: 365th day of the year (end of the year)

In 2016 we have 365 − 327 = 38 days

April 04, 2017: 94th day of the year (using the table)

In 2017 we have 94 days

132

Therefore, the number of days in the given time period = 38 + 94 = 132 days. In terms of years, t = =

365

0.36 years

d. August 25, 2015: 237th day of the year (using the table)

December 31, 2015:365th day of the year (end of the year)

In 2015 we have 365 − 237 = 128 days

September 06, 2016: 249th day of the year (using the table)

But 2016 is a leap year, therefore September 06, 2016 will be 249 + 1 = 250th day of the year since

February 29 will be day 60.

In 2016 we have 250 days.

378

Therefore, the number of days in the given time period = 128 + 250 = 378 days. In terms of years, t =

365

=1.04 years

Exercise 8.1, Solution 3:

200

a. I = Prt = (200) (0.10) ( ) = $10.958904... = $10.96

365

Therefore, amount of interest earned on the given investment = $10.96.

b. From the days table,

April 15: 105th day

November 1: 305th day

Difference = 305 − 105 = 200 days

365

365

Therefore, amount of interest earned on the given investment = $48.22

c. From the days table,

January 24: 24th day of the year

December 31: 365 th day of the year

Difference = 365 − 24 = 341 days

In 2017 we have 341 days

February 15: 46th day of the year

In 2018 we have 46 days

Total days in the given time period = 341 + 46 = 387 days

387

t= × 12 months

365

387

I = Prt = (5605) (0.012) ( × 12) = $855.768328... = $855.77

365

Therefore, amount of interest earned in the given period = $855.77.

3 3

d. t = 1 year and 9 months 1 years = 1 years × 12 months = 21 months

4 4

I = Prt = (150) (0.008) (21) = $25.20

Therefore, the amount of interest earned in the given period = $25.20

Exercise 8.1, Solution 5:

From the days table,

January18: 18th day of the year

April 24: 114th day of the year

Difference = 114 - 18 = 96 days

Match the unit of ‘t’ to that of ‘r’

96

P= $12,500, r=0.0325% p.a. t=

365

Using the formula I = Pr t , we get:

96

I = (12,500)(0.0325)( )

365

= 106.849315...

Therefore, the amount of interest charged in this period was $106.85.

Exercise 8.1, Solution 7:

From the days table,

November 18: 322th day of the year

December 31: 365th day of the year

Difference = 365 - 322 = 43 days

Therefore, in 2014 we have 43 days

February 23: 54th day of the year

Therefore, in 2015 we have 54 days

Total days in the given time period = 43 + 54 = 97

Match the unit of ‘t’ to that of ‘r’

97

P = $5000, r = 2.2% p.a. = 0.022 p.a., t = 97 days = years

365

Using the formula I = Pr t , we get:

97

I = (5000)(0.022)( )

365

= 29.2328...

Therefore, the amount of interest earned for this period was $29.23.

Exercise 8.1, Solution 9:

3 1 5

t = 1 year and 3 months = 1 + =1+ = years

12 4 4

5

I = Prt = (5000) (0.05) ( ) = $312.50

4

Therefore, he will receive an interest of $312.50 at the end of the time period.

Exercise 8.1, Solution 11:

11

t = 11 months = years, r = 5.5% = 0.055

12

11

I = Prt = (750) (0.055) ( ) = $37.8125 = $37.81

12

Therefore, Nathan would have to pay an interest of $37.81.

Exercise 8.1, Solution 13:

From the days-table

Jan 02: 2nd day in the year

December 31: 365 th day of the year

Difference = 365 − 2 = 363 days

Therefore, in 2015 we have 363 days

Mar 15 = 74th day in the year

But 2016 is a leap year, therefore Mar 15, 2016 will be 74 + 1 = 75th day of the year since February 29 will

be day 60.

Therefore, in 2016 we have 75 days.

Total days in the given time period = 363 + 75 = 438 days

438

t in years = years

365

438

I = Prt = 8000 × 0.04 × = $384

365

Therefore, she would earn an interest of $384 by March 15, 2016.

Exercise 8.1, Solution 15:

20

t = 20 days = years

365

20

I = Prt = (2500) (0.125) ( ) = $17, 123288... = $17.12

365

Therefore, Benjamin would have to pay an interest of $17.12 to the lender.

Exercise 8.1, Solution 17:

æ 45 ö 540

r = 0.06, t = 45 days = ç ´12 ÷ months = months

è 365 ø 365

540

I = Prt = (5000) (0.015) ( ) = $110.958904... = $110.96

365

Therefore, Aidan would have to pay an interest of $110.96 at the end of the time period.

Exercise 8.1, Solution 19:

0.098

First rate: r = 9.8% per annum = 0.098 = = 0.008166… per month = 0.82% per month

12

Second rate: r = 0.85% per month

Therefore, the second rate is more attractive for a lender of a loan because it is higher and hence results in a

higher interest for a given amount of loan.

Exercise 8.1, Solution 21:

Rate of interest charged by the Angelo to Alisa r = 6% p.a = 0.06

18

t = 18 months = = 1.5 years

12

I = Prt = (2500) (0.06) (1.5) = $225.00

At the end of 18 months, Alisa should pay Angelo $225.00 in interest.

Rate of interest charged by the bank to Angelo = 4.6% per annum = 0.046

Interest charged by the bank = (2500) (0.046) (1.5) = $172.50

Therefore, Angelo should pay an interest of $172.50 to the bank at the end of 18 months.

For Aba,

210

t = 210 days = ´12 months

365

r = 0.4% per month = 0.004

210

Therefore, we have interest earned I = Prt = (5200) (0.004) ( ×12 ) = $143.605479... = $143.61

365

For Tabita,

r = 4.3% per annum = 0.043

210

t = 210 days = years

365

210

Therefore, we have interest earned I = Prt = (5200) (0.043) ( ) = $128.646575... = $128.65

365

143.61 – 128.65 = $14.96

Therefore, Aba earned $14.96 more interest.

Exercise 8.1, Solution 25:

8 2

t = 8 months = = years

12 3

2

First interest I = Prt = (3500) (0.046) ( ) = $107.333333... = $107.33

3

Second interest I = Prt = (7500 − 3500) (0.004) (8) = $128.00

Therefore, total interest earned from both investments = 107.33 + 128.00 = $235.33

Exercise 8.1, Solution 27:

æ 180 ö 180

t = 180 days = ç ´12 ÷ months = years

è 365 ø 365

180

Interest at 11% per annum rate: I = Prt = (2600) (0.11) ( ) = $141.041096...

365

æ 180 ö

Interest at 1.2% per month rate: I = Prt = (2600) (0.012) ç ´12 ÷ = $184.635616...

è 365 ø

184.635616… – 141.041096… = $43.594520… = $43.59

Therefore, if the rate was 1.2% per month, $43.59 more interest would have to be paid.

Exercise 8.1, Solution 29:

P=$5,000 ; t = 0.5

Assuming the simple interest rate is 1% p.a., r = 0.01

Interest at 1% p.a: I = Prt = (5,000) (0. 5) (0.01) = $25

When it is 2% higher, the interest will be:

Interest at 3% p.a: I = Prt = (5,000) (0. 5) (0.03) = $75

$75 - $25= $50

Therefore, he would have earned an additional $50 interest if the interest rate was 2% higher.

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