Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 6, Problem 6FPE
Using overdraft protection line. Grace Wang has an overdraft protection line. Assume that her October 2020 statement showed a latest (new) balance of $862. If the line had a minimum monthly payment requirement of 5 percent of the latest balance (rounded to the nearest $5 figure), what would be the minimum amount that she’d have to pay on her overdraft protection line?
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Problem:
Answer the following questions completely. Show all computations. Round off only the final answers to two decimal places.
On June 26, 2019, Sarah obtained a loan of P150,000 from a local businessman. The interest rate on the loan was 7.75% and it is to be paid on November 15, 2020.
What is the exact time from June 26, 2019, to November 15, 2020?
What is the approximate time from June 26, 2019, to November 15, 2020?
What is the Ordinary simple interest using exact time?
What is the Ordinary simple interest using approximate time?
What is the Exact simple interest using exact time?
What is the Exact simple interest using approximate time?
If Sarah was given the option to choose the type of interest to use, which should she had chosen? Explain why in one sentence.
Chapter 6 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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