Suppose I secure a simple interest note for $4500. The length of the note is 102 months and the interest is 6.2%. How much will I owe the bank when the note comes due?
Suppose I secure a simple interest note for $4500. The length of the note is 102 months and the interest is 6.2%. How much will I owe the bank when the note comes due?
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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Suppose I secure a simple interest note for $4500. The length of the note is 102 months and the interest is 6.2%. How much will I owe the bank when the note comes due?
Expert Solution
Step 1
Interest = Principal * rate * time
Interest = $4500 * 6.20% * 102 /12
Interest = $2,371.50
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