Bulls Eye Stores constructed new stores during the current year. The average balance in the Construction-in-Process account excluding the current year’s capitalized interest costs was $3,400,000. Bulls Eye Stores engaged in borrowing directly related to these stores in the amount of$2,000,000, which carries an interest rate of 6%. Bulls Eye Stores has other borrowing outstanding totaling $8,000,000 at an average interest rate of 7%. Compute the amount of interest capitalized in the Construction-in-Process account during the current year.

The Mejias have a $60,000 mortgage loan from Home Loan Bank at an interest rate of 11% for 25 years. Use the table on page 645 to find the monthly payment and the total interest charged.

The formula A=p+prt gives the amount of money A in an account where the initial deposit is p and the money grows at a simple annual interest rate of r for t years. Assume no other deposits or withdrawals are made.

How much was deposited in the account if the amount in the account after 6 years is $17.70 and the interest rate is 3%?

Previously, we discussed the Rule of 72, a useful approximation for many interest rates and periods for the time it takes a lump sum to double in value. For a 10 percent interest rate, show that the “Rule of 73” is slightly better. For what rate is the Rule of 72 exact? (Hint: Use the Solver function in Excel.)

Complete the following compound interest chart.

Fill in each blank so that the resulting statement is true. If you are selecting the best investment from two or more investments, the best choice is the account with the greatest ____, which is the ____ interest rate that produces the same amount of money at the end of one year as when the account is subject to compound interest at a stated rate.

Use the formula and tax tables provided in this lesson to perform all computations. Find the effective federal income tax rate of a married couple with no children, who have a combined income of $34,000.

Leroy borrowed $8250 to be repaid after 3 years at an annual simple interest rate of 7.25%. How much interest will be due after 3 years? How much will Leroy have to repay?

Use the formula I = PRT, where I = interest in dollars, P = principal or loan amount, R = interest rate written as a decimal, and T = time in years.

Find the interest if principal of $5200 is invested at$7 $\frac{1}{2}$%$ (or .075) for one year.

Continuously compounded interest Ten thousand dollars is invested in a savings fund in which interest is compounded continuously at the rate of $7 \%$ per year.

How long does it take for money to double in the account?

At the end of 10 months, the balance of an account earning annual simple interest is $2100. a. If, at the end of 18 mo, the balance is$ 2180, how much money was originally in the account?
b. What is the annual rate of interest?

Fred’s credit union offers a simple interest home equity loan that uses a daily rate. For such loans, interest is computed using the following formula: (Loan balance) (daily rate)(days between payments) If Fred borrows $15,000 at a daily periodic rate of 0.000144 and he pays the loan off in one single payment of$18,153.60, how long was the term of the loan?

In each of the following compound interest equations with t representing the account term, determine the number of times the account is compounded per year and the interest rate percent. $268.57=100(1.025)^{2 t}$

For simple interest accounts, the interest earned or due depends on the principal p, interest rate r, and the time t in years according to the formula I=p r. By using this relation solve the listed below exercise: Larry came up a little short one month at billpaying time and had to take out a title loan on his car at Check Casher's, Inc. He borrowed 260 dollars, and 3 weeks later he paid off the note for 297.50 dollars. What was the annual interest rate on this title loan? (Hint: How much interest was charged?)