.A bank offers a 272- day discounted loan at a simple discount rate of 12%. (a) How much money would a borrower receive if she asked for a $5,000 loan? (b) What size of the loan should the borrower ask for in order to actually receive $5,00 (c) What is the equivalent simple interest that is being charged on the loan?
.A bank offers a 272- day discounted loan at a simple discount rate of 12%. (a) How much money would a borrower receive if she asked for a $5,000 loan? (b) What size of the loan should the borrower ask for in order to actually receive $5,00 (c) What is the equivalent simple interest that is being charged on the loan?
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
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Transcribed Image Text:12. A bank offers a 272- day discounted loan at a simple discount rate of 12%.
(a) How much money would a borrower receive if she asked for a $5,000 loan?
(b) What size of the loan should the borrower ask for in order to actually receive $5,000?
(c) What is the equivalent simple interest that is being charged on the loan?
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