On April 3, the Mears Flag Company borrowed $15,000 to pay for start-up costs for its new showroom. The loan had a simple interest rate of 8.25% and was for 270 days. The company was able to make partial payments of $6,000 on May 28 and $3,500 on October 12. How much will the company owe on the date of maturity of the loan?

On April 3, the Mears Flag Company borrowed $15,000 to pay for start-up costs for its new showroom. The loan had a simple interest rate of 8.25% and was for 270 days. The company was able to make partial payments of $6,000 on May 28 and $3,500 on October 12. How much will the company owe on the date of maturity of the loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 16P

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