In-class task #3
- Chapter 7 – Questions
SportZ Ltd. purchases materials and services from various vendors. Money has been borrowed from the Bank of Alberta. Payments to the vendors and the bank are being planned.
- SportZ has invoices for materials purchased from Platinum Steel Inc. The invoices are for $4242 due 60 days ago, $12 567 due in 30 days, and $18,451 due in 140 days. If SportZ pays all of these invoices today, how much cash is needed? Money is worth 6% per annum.
- Creative Inc., a design company, has sent SportZ an invoice for services provided in the amount of $15,000, due today. Alternatively, they will accept payment of $15,150 in 50 days. What interest rate is being charged?
- Chapter 7 – Question
Jake owed Terry $3690 nine months ago and Jake also owed Charles $4008 three months ago. If Jake wanted to repay both of these debts today, determine the single payments that would full repay the debts. Allow for simple interest at 0.8%.
- Chapter 8 – Question
A father wanted to show his son what it might be like to borrow money from a financial institution. When his son asked if he could borrow $120, the father lent him the money and set up the following arrangements. He charged his son $6 for the loan of $120. The son therefore received $114 and agreed to pay his father 12 installments of $10 a month, beginning one month from today, until the loan was repaid. Calculate the approximate rate of simple interest the father charged on this loan.
