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A corporate bond paying $1,000 after 36 weeks earns 0.03% simple interest per week. How much did it cost to buy?
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- What can be best said about a banker whose interest rate is 20% on a one-year loan worth $1000 today?If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?Write the formula developed for calculating compound interest?
- Why would a bank lending officer be interested in thecash flow statement of a company that is applying for a loan?You borrow $500 from a family member and agree to pay it back in six months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after six months? How much is the interest?At what rate of interest will an investment double itself in 10 years?