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02 May 2021, 06:59
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
57% (02:23) correct
43%
(02:20)
wrong
based on 107
sessions
History
Date
Time
Result
Not Attempted Yet
You want to earn an annual interest of 10% on a note that you want to buy. What should be the nearest amount (in Dollars) that you would pay for the note if it is worth $5,000 and matures in 9 months?
A)4000
B)5500
C)4400
D)4750
E)4650
A)4000
B)5500
C)4400
D)4750
E)4650
04 May 2021, 07:41
Kudos
Bookmarks
Amount = 5000 (Principal + Interest)
12 month interest = 10%
1 month interest = \(\frac{10 }{ 12 }\)
9 months interest = \(\frac{10 }{ 12 } * 9 = 7.5\)
5000 = P + I
=> 5000 = P + \(\frac{PRT}{100}\)
=> 5000 = P + \(\frac{P * 7.5 * 1 }{ 100}\)
=> 5000 = P + \(\frac{P * 75 * 1 }{ 1000}\)
=> \(5000 = \frac{1075P}{1000}\)
=> \(P = \frac{5000 * 1000 }{ 1075} = 4651.xx\)
Answer E
12 month interest = 10%
1 month interest = \(\frac{10 }{ 12 }\)
9 months interest = \(\frac{10 }{ 12 } * 9 = 7.5\)
5000 = P + I
=> 5000 = P + \(\frac{PRT}{100}\)
=> 5000 = P + \(\frac{P * 7.5 * 1 }{ 100}\)
=> 5000 = P + \(\frac{P * 75 * 1 }{ 1000}\)
=> \(5000 = \frac{1075P}{1000}\)
=> \(P = \frac{5000 * 1000 }{ 1075} = 4651.xx\)
Answer E
