Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you borrow $20,000 to be repaid in a lump sum five

You borrow $20,000 to be repaid in a lump sum five years from now. The...

70.2K

Verified Solution

Question

Accounting

image

image

You borrow $20,000 to be repaid in a lump sum five years from now. The interest rate is 7.2% pa (nominal), payable quarterly. How much interest will you pay over the term of the loan? S4,519.82 b. 58,574.96 e. S7,200.00 d. $3.993.09 e. None of the above Paned of 11 compounding at the rate of 0.75% per month. Thus: $20 000 X (1.0075)' = $20 453.38. Therefore the interest must be $20 453.38 $20 000 = $453.38. See page103. 15 How much will I receive from issuing a 90 day commercial bill of $50 000 at a yield of 6.6% (assuming no fees)? a. S49 199.33 b. S50 800.67 $49 188.39 d. S49 186.30

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students