1.Lilibeth borrowed $1,200 from her aunt to buy a book. She promised to pay her after a month.Her aunt agreed, but she asked Lilibeth to pay her back the amount of $1,350. How much interestwill she pay? What is the rate of interest she will pay?

Simple Interest may be defined as Interest that is calculated as a simple percentage of the original…

Answered: 1. Lilibeth borrowed $1,200 from her…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. Lilibeth borrowed $1,200 from her aunt to buy a book. She promised to pay her after a month. Her aunt agreed, but she asked Lilibeth to pay her back the amount of $1,350. How much interest will she pay? What is the rate of interest she will pay?