Question 1You borrow 1000 from a friend at a simple interest rate of 6% for 4 years. Calculatethe amount of interest incurred in that time period. Round your answer to thenearest dollar.Your Answer:AnswerQuestion 2If you borrow $1350 from a bank account today that charges 5% nominal interestper year, how much money do you owe 8 years from now if the interest iscompounded monthly? Round your answer to the nearest dollar.Your Answer:AnswerQuestion 3You borrow $200 from a bank that charges 4% nominal interest for 14 years. If thebank uses daily compounding, calculate the effective interest rate. Write youranswer in terms of percentage and round to two decimal places; example 7.42Your Answer:

Since you have asked multiple questions, we will solve the first question for you. If you want any…

Question 1 You borrow 1000 from a friend at a simple interest rate of 6% for 4 years. Calculate the amount of interest incurred in that time period. Round your answer to the nearest dollar. Your Answer: Answer

Question 1 You borrow 1000 from a friend at a simple interest rate of 6% for 4 years. Calculate the amount of interest incurred in that time period. Round your answer to the nearest dollar. Your Answer: Answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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