# Research Paper Help|Math-problem

Question No.1

The list price for a radio is 22% higher than its net price. If the net price is $29.00, what is the

list price? What is the amount of the trade discount?

Answer- 1

Net price of Radio= $29

List price is22 % higher

i.e. List price/ Net price = 122/100

Therefore List price = 122/100 * 29

The calculation is accomplished as below:

List Price $ 35,38

Net Price $ 29,00

Trade discount (amount) $ 6,38

Trade discount (percentage) 18,03%

Question No.2

A certified public accountant discounts a bill to $294.00 when a client pays

in cash, within 10 days. If the cash discount is 1.5%, how much would the customer

have paid if he or she had not been eligible for the discount? Report the result to the

nearest penny.

Answer- 2

Discount = Bill amount * 1.5/100

Bill amount = Discounted value + Discount = Discounted amount + Bill amount * 1.5/100

Discounted value = Bill amount (1-1.5/100) = Bill amount * 98.5/100

or: Bill amount = Discounted value * 100/98.5

The above calculation is accomplished in Excel worksheet as below:

Un-discounted bill $ 298,48

Percentage discount 1,50%

Discounted bill amount $ 294,00

Amount of discount $ 4,48

Question No.3

Bill’s Accounting is taking out a lease on $2,000 worth of computing equipment and office

furniture, over a two year period. The bank charges 8.25% interest annually. Compute the

interest paid and the total amount paid for the lease.

PAGE- 2Answer- 3

Principal repaid at the end of the period

Principal for first year as well as second year = $ 2000

Annual Interest is calculated by the formula: I = P * r / 100

Where ‘r’ is the annual rate of interest

Here ‘r’ = 8.25

Therefore annual interest of $ 2000 is: 2000 * 8.25/100 =

Interest for 2 years = Annual interest * 2

The above calculation is accomplished in Excel worksheet as below:

Amount of loan $ 2 000,00

Annual interest $ 165,00

Interest for 2 years $ 330,00

TOTAL AMOUNT PAYABLE $ 2 330,00

Question No.4

You need to borrow $5,000 for 2.33 years. Originally, the bank offers a 6.5% rate. Then,

after some negotiation, they are willing to drop the rate to 5.5%. What savings in interest will you

have as a result of the rate reduction?

Answer- 4

Annual Interest is calculated by the formula: I = P * r / 100

Where ‘I’ is the interest amount and ‘r’ is the annual rate of interest

Here ‘r’ = 6.5 in one case and 5.5 in the other case

Principal amount $ 5 000,00

Period (Years) 2,33

Original interest rate (Percent) 6,50%

Negotiated interest rate (Percent) 5,50%

Annual interest (case-1) = 5000 * 6.5/ 100= Say ‘x”

Interest for 2.33 years = ‘x” *2.33

Annual interest (case-2 = 5000 * 5.5/100= Say ‘y”

Interest for 2.33 years= ‘y’ * 2.33

Calculation in Excel Worksheet

Annual Int. Annual Int. Annual Savings for

6,50% 5,50% savings 2.33 years

Principal amount $ 5 000,00 $ 325,00 $ 275,00 $ 50,00 $ 116,50

Question- 5 PAGE- 3A consumer loan is made at 10.0% over a 3.5 year period. If $2,125 in interest is paid, what

is the principal? What is the total amount paid by the consumer? Report the results to the

nearest penny.

Answer- 5

The amount payable against a loan taken on simple interest is given by the following equation

I = P * r /100 * n

Where

P is the principal

r is the rate of annual interest, and

n is the period in years

Based on above equation ‘ P ‘ = {‘ I ‘/ (r/ 100)} / n = (100 * ‘ I ‘ / r ) / n

i.e.: = ‘I’ * {(100 * 2125 / (10/100)} / n = 2125 * 10 / 3.5

Principal amount (?) = ‘P’

Rate of interest= 10% p.a

Period of loan= 3.5 years

THE ABOVE IS ACCOMPLISHED IN EXCEL AS BELOW:

Rate of interest 10,00%

Period of loan (years) 3,50

Interest paid $ 2 125,00

Principal amount (?) = ‘p’ $ 6 071,43

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