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..... cent as needed. Round all intermediate values to six decimal places as needed.)

..... cent as needed. Round all intermediate values to six decimal places as needed.)

Essentials Of Investments
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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An automotive dealer borrowed S7500.00 from the Bank of Montreal on a demand note on May 13. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 13th of each month. The automotive dealer made a payment of $1700 on July 25, a payment of $4300 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 13 was 3% per annum. The rate was changed to 3.35% on August 1 and to 3.7% on October 1. What was the total interest cost for the loan? The total interest cost for the loan is S. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:An automotive dealer borrowed S7500.00 from the Bank of Montreal on a demand note on May 13. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 13th of each month. The automotive dealer made a payment of $1700 on July 25, a payment of $4300 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 13 was 3% per annum. The rate was changed to 3.35% on August 1 and to 3.7% on October 1. What was the total interest cost for the loan? The total interest cost for the loan is S. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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