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Saturday Math 113: HW #2
Name:
Put answers on this page. Do work on separate paper and turn your work in attached to this cover page.
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1. The Shelbyville Bank and Trust is charging 12.6% for an unsecured loan. Brad owes $21000 on
December 1, 2004, but decides to pay off the loan early on February 1, 2004. How much does he owe?
2. Larry is leasing land for his soccer club and has incurred debts of $6000 due on 8/1/03 and $4000 due on
10/2/03. On 6/15/03 Larry has enough money to clear both debts. If he is paying 6.5%, how much is his
payoff?
3. Find the payoff of $1000 due on 1/1/03 and $2500 due on 7/1/03 at 6%.
4. Eric needs to pay for the parts to repair his tractor. Assuming he can earn 18% on his money, should he
pay $2000 now or wait a year and pay $2400?
5. On March 1, 2005, Shawnte bought a $10000, 180-day note. On April 20, 2005, she needed cash ad sold
her note to Anthony, who requires 15% on his investment. How much did Anthony pay Shawnte for her
note?
6. Suppose the note from problem #5 pays interest at 7%. How much would Anthony have to pay Shawnte
for the note?
7. What one payment in 2 years will clear debts of $500 due in 3 months and $1000 due in 6 months if:
(a) we use today as the focal date
(b) we use 6 months as the focal date
(c) we use 1 year as the focal date
8. Luke owes $1000 in 1 year and $3000 in 5 years. What cash payment now would clear both debts if
money is worth 3.5%?
9. Lando buys a $500 chocolate lab puppy from a championship line on 6/1/04 and agrees to make 3 equal
payments on 12/1/04, 6/1/05, and 12/1/05. If the breeder charges 10%, how much is each payment?
10. Mara Jade borrows $5000 on 3/15/05 and pays back $1000 on 6/17/05 and $2000 on 7/1/05. How
much is owed on 8/10/05 at 5%?
11. Jaina borrowed $3500 on January 20, 2005 at 5%. She made payments of $400 on May 30, $1580 on
August 10, and $950 on October 5. Find the amount needed to discharge her debt on December 1?
12. Find the average due date for debts of $400 due in 20 days, $500 due in 45 days, $500 due in 45 days,
$600 due in 65 days, and $700 due in 80 days.
13. When could a single payment of $2000 clear debts of $500 due in each of 35 days, 48 days, 60 days, and
81 days?