A major airline is planning to purchase nw airplanes. It wants to borrows $800 million by issuing bonds. The bonds are for a 10-year period with simple interest computed quarterly at a rate of 2 percent per quarter. Interest is to be paid each quarter to bondholders. How much will the airline have to pay in quarterly interest? How much interest will it pay over- the 10-year period?
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1)A company has issued a 5 year loan on $90,000 to new vice-president to finance in home improvement project. The term of the loan is that it is to be paid back in full at the end of 5 years with simple interest computed at the rate of 8% per year. Determine the interest which must be paid on the loan for the 5 year period?
2)A student has received a $30,000 loan from a wealthy aunt in order to finance his 4 year college program. The terms are as such that the student has to repay the aunt in full at the end of 8 years with simple interest computed at 4% per year. Determine the interest which must be paid at end of 8 years?
3)A woman has purchased $150,000 worth of corporate bonds. The bonds expire in 20 years. And simple interest is computed semiannually at the rate of 7% per 6 month period. Interest checks are mailed to shareholders every 6 month period. Determine the interest woman can expect to earn every 6 months. How much interest can she expect in 20 years period
4)A major airline is planning to purchase new airplanes. It wants to borrow $800 million by issuing bonds. The bonds are for a 10 year period with simple interest computed quarterly at the rate of 2% per quarter. Interest is to be paid each quarter to the bond holders. How much will the airline have to pay in quarterly interest? How much interest will it pay over a 10 year period?
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