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Un July 1, a man borrowed $2000 at 6% simple interest. He paid $500 on August 30 and $600 on September 29. Find the balance on October 29 of the same year. A man owes $100, due in two months, and $400, due in eight months. His creditors have agreed to settle his debts by two equal payments in four months and ten months, respectively. Find the size of each payment if the rate of interest is 6% and the comparison date is four months hence. 4. Several months ago you signed a contract to buy $4,175 worth of equipment for your business. You didn't have the money to pay the $4,175 so the seller agreed to finance it at an interest rate of 10% simple. Today, the first payment of $2,000 is due and 2 years from now a payment of $3,000 is due. (a) Do you owe $5,000? (b) You cannot afford to make today's payment so you call the seller and arrange to pay the entire amount at the end of 2 years. Find the size of the payment. (c) You won some money at the casino today so you decide to pay off both debts today. Find the size of the payment. 5. Six months ago, you borrowed $11,000 from TD Canada Trust. The bank charges you 10% simple interest. (a) You arrange to pay the entire loan 30 months from today. Find the size of the payment. (b) You have a $7,000 term deposit that matures one year from now so you decide to make a payment of $7,000 one year from now and pay the rest 30 months from now. What is the size of the final payment? Use 30 months as the focal date. (c) Suppose, instead, you agree to pay off the loan with 2 equal payments at 6 months and at 30 months from today. Find the size of each payment. Use 30 months as the focal date

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