A restaurant borrows $15,200 from a local bank for 10 months. The local bank charges simple interest at an annual rate of 4.55% for this loan. Assume each month is 112 of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas . (a) Find the interest that will be owed after 10 months. $ (b) Assuming the restaurant doesn't make any payments, find the amount owed after 10 months.

A restaurant borrows $15,200 from a local bank for 10 months. The local bank charges simple interest at an annual rate of 4.55% for this loan. Assume each month is 112 of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas . (a) Find the interest that will be owed after 10 months. $ (b) Assuming the restaurant doesn't make any payments, find the amount owed after 10 months.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 77P: It is January 1 of year 0, and Merck is trying to determine whether to continue development of a new...

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Concept explainers

Cash Outflow

The term "cash flow" basically means the flow of money in and out of business. The cash flow usually takes place from operational, investing, and financing activities. The cash flow normally denotes the amount of cash that is transferred either into the business as positive cash flows or out of business as expenses with regards to operating, investing, and financing activities.

Question

A restaurant borrows

$15,200

from a local bank for

months. The local bank charges simple interest at an annual rate of

4.55%

for this loan. Assume each month is

112

of a year. Answer each part below.

Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the

list of financial formulas

(a)	Find the interest that will be owed after 10 months.
		$
(b)	Assuming the restaurant doesn't make any payments, find the amount owed after 10 months.

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