Exercise 5. (1+1+1+5 marks)
1. You borrowed $ 500 for seven months and paid $ 50 in interest. What was the rate of interest?
2. You borrowed $ 5,000 at 12 % simple interest rate per year. If you paid $ 300 interest, what
was the duration of the loan?
3. Find the ordinary and exact interest on a loan of $ 2,000 at 10 % annual interest rate if the
loan is made on March 5 and due on September 5.
4. You secured a loan of $ 10,000 at 10 % annual interest compounded semiannually for four
years.
• Manually find the future value.
• Use a future value table to recalculate the future value (explain how you are using the
table)
• Find the compound interest.