7. keith wendell plans to borrow $5,810. he has decided on a term of 95 days at 8% interest. he has a choice of two lenders. one calculates interest using a 360-day year and the other uses a 365-day year. find the amount of interest wendell will save by using the lender with the 365-day year. $1.54 $1.67 $1.63 $1.68 8. jake winters plans to invest $7,400. find the interest rate required for the fund to grow to $7,844 in 8 months. 9% 5.7 % 8.5% 6%

Given:
Principal : $5,810
term: 95 days
rate: 8%

365/360 days

Interest = Principal * rate * term
Interest = 5,810 * 0.08 * 95/360
Interest = 122.66

Interest = 5,810 * 0.08 * 95/365
Interest = 120.98

122.66 - 120.98 = 1.68

Wendell will save $1.68 in interest if he chose the lender that uses 365-day year.

Given:
Principal - $7,400
Future Value - 7,844
term - 8 months
interest rate - x

Interest = 7844 - 7400 = 444

Interest = Principal * rate * term
444 = 7,400 * rate * 8/12
444 = 4,933.33 * rate
444 / 4,933.33 = rate
0.09 = rate

The interest rate required for the fund to grow to $7,844 in 8 months is 9%