Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:To go on a summer trip, Keith borrows $600. He makes no payments until the end of 2 years, when he pays off the entire loan. The lender charges simple
interest at an annual rate of 4%.
Answer the following questions. If necessary, refer to the list of financial formulas
(a) How much total interest will Keith have to pay?
${
(b) What will the total repayment amount be (including interest)?
$0
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