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Essentials Of Investments
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ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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![Simple Interest: A $45,000 loan at 3.75% dated June 10 is due to be paid on October 11. Using ordinary interest, what is the amount of
interest?](https://content.bartleby.com/qna-images/question/58c44c7e-78ef-46da-9ced-8553f61a9a3d/790f2ed3-b148-4c31-b75c-85b121a51de6/8jrx5eg_thumbnail.jpeg)
Transcribed Image Text:Simple Interest: A $45,000 loan at 3.75% dated June 10 is due to be paid on October 11. Using ordinary interest, what is the amount of
interest?
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- Using the ordinary interest method, find the amount of interest on a loan of $11,000 at 11 % interest, for 130 days. $4arrow_forwardComplete the following table: Selling price $231,000, Down payment $46,200, Amount mortgage $184,800, Rate 7.00%, Years 15, Monthly payment $1,661.35. What is the interest and principal on first payment? What is the balance at end of month?arrow_forwardThe stock price is currently $30. Each month for the next two months it is expected to increase by 8% or reduce by 10%. The risk-free interest rate is 5%. Use a two-step tree to calculate the value of a derivative that pays off [max(30 — St; 0)]2, where St is the stock price in two months? If the derivative is American-style, should it be exercised early?arrow_forward
- The simple interest charged on a 5-month loan of $51,000 is $356. Find the simple interest rate. (Round your answer to one decimal place.)arrow_forward(a)What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is the rebate fraction of a 42 month loan paid off after the 18th payment?arrow_forwardThe principal P is borrowed and the loan's future value A at time t is given. Determine the loan's simple interest rate r. P = $3800.00, A = $3885.50, t = 3 months S % (Round to the nearest tenth of a percent as needed.)arrow_forward
- Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,400 10.4 days $222arrow_forwardCompute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Principal Rate (%) Time Interest $ 8 6 months $1,800arrow_forward
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