GivenPrincipal: $8,000, 7%, 240 daysPartial payments: On 100th day, $3,400On 180th day, $2,300a. Use the U.S. Rule to solve for total interest cost. (Use 360 days a year. Do not round intermediate calculations. Round youranswer to the nearest cent.)Total interest costb. Use the U.S. Rule to solve for principal balances. (Use 360 days a year. Do not round intermediate calculations. Round youranswers to the nearest cent.)Balance after the paymentOn 100th dayFinal paymentOn 180th dayc. Use the U.S. Rule to solve for final payment. (Use 360 days a year. Do not round intermediate calculations. Round your answer tothe nearest cent.)

According to the US rule interest is calculated only on the unpaid principal amount for the days…

Answered: Given Principal: $8,000, 7%, 240 days…

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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