I'm totally stumped on whether I'm doing these problems right. Wells Fargo borrowed...
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I'm totally stumped on whether I'm doing these problems right.
Wells Fargo borrowed $80,000,000 at 5% interest for 180 days from a Japanese investment house. At the same time, the bank made the following three loans, each for the exact 180-day period. 1. A 7% simple interest note for $38,000,000 to a Canadian firm that extracts oil from Canadian tar sands; An 8.2% simple interest note for $27,500,000 to a European contractor building a factory in South Africa, and 3. An 8% simple interest note for $14,500,000 to a Louisiana company building minesweepers in New Orleans for the British government. (a) Find the difference between interest received and interest paid by the bank on these funds. (b) The bank did not loan out all $80,000,000. Find the amount it actually loaned out. (c) Find the effective rate of interest to the nearest hundredth of a percent for all three loans the bank made to its three clients. Wells Fargo borrowed $80,000,000 at 5% interest for 180 days from a Japanese investment house. At the same time, the bank made the following three loans, each for the exact 180-day period. 1. A 7% simple interest note for $38,000,000 to a Canadian firm that extracts oil from Canadian tar sands; An 8.2% simple interest note for $27,500,000 to a European contractor building a factory in South Africa, and 3. An 8% simple interest note for $14,500,000 to a Louisiana company building minesweepers in New Orleans for the British government. (a) Find the difference between interest received and interest paid by the bank on these funds. (b) The bank did not loan out all $80,000,000. Find the amount it actually loaned out. (c) Find the effective rate of interest to the nearest hundredth of a percent for all three loans the bank made to its three clients
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