The Tomac Swim Club arranged short-term financing of $13,000.00 on July 19 with the Bank of Commerceand secured the loan with a demand note. The club repaid the loan by payments of $6100 on September13, $3200 on November 25, and the balance on December 30. Interest, calculated on the daily balanceand charged to the club's current account on the last day of each month, was at 6% per annum on July 19.The rate was changed to 6.5% effective September 1 and to 5.5% effective December 1. How muchinterest was paid on the loan?The total interest paid was S(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal placesas needed.)

In this we have to calculate daily interest and than calculate the total interest.

Answered: The Tomac Swim Club arranged short-term…

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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The Tomac Swim Club arranged short-term financing of $13,100.00 on July 5 with the Bank of Commerce and secured the loan with a demand note The club repaid the loan by payments of $5900 on September 25, $3400 on November 11, and the balance on December 3o Interest, calculated on the daily balance and charged to the club's current account on the last day of each month, was at 10% per annum on July 5 The rate was changed to 9 5% effective September 1 and to 10 5% effective December 1. How much interest was paid on the loan?
Campus Flights takes out a bank loan in the amount of $145,847 on March 1. The terms of the loan include a repayment of principal in 7 equal installments, paid annually from March 1. The annual interest rate on the loan is 10%, recognized at the end of the 7 equal installments. Compute the interest recognized in year 1 rounded to the whole dollar.
Campus Flights takes out a bank loan in the amount of $257,688 on March 1. The terms of the loan include a repayment of principal in 9 equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized at the end of the 9 equal installments. Compute the interest recognized in year 1 rounded to the whole dollar. √
A company plans to make four annual deposits of $4,250 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $4250 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $4250 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $4250 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $4250 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year.
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