A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and interest) was written, if a 10.3% annual rate of interest was charged? CD LIUSE The amount of the repayment check was $ 23.000 93 (Round to two decimal places)

A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and interest) was written, if a 10.3% annual rate of interest was charged? CD LIUSE The amount of the repayment check was $ 23.000 93 (Round to two decimal places)

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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Concept explainers

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.

Question

A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and interest) was written, if a 10.3% annual rate of interest was
charged?
CUC
The amount of the repayment check was $ 23,060 93 (Round to two decimal places)

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