1. Cameron designates 10% of his monthly earnings as charitable contributions. Afterdeducting this amount, he deposits 5% of the remaining amount into a money marketaccount earning 2%. If Cameron's monthly earnings are $4,800 what amount interestwill he earn on his deposit each month?2. Find the maturity value for a loan on $4,225 at 8% made on March 5 and due on May 5of the same year. Assume a 365-day year.3. Republic Bank advertises their interest rates at 7 % %. You decide to apply for a loan inthe amount of $9,000 for 90 days. The bank grants your loan and the loan officer tellsyou that there is a document preparation fee of $150 that needs to be paid at the time yousign the documents for the loan. Find the APR. Assume a 360-day year.4. You took out a loan of $5,000 on May 2 and went back on June 15 to make a payment of$1,200. The loan was at 4% for 1 year. What was your remaining balance after makingthat payment?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this amount, he deposits 5% of the remaining amount into a money market account earning 2%. If Cameron's monthly earnings are $4,800 what amount interest will he earn on his deposit each month?