1. Terry Bergolt's bank granted him a single-payment loan of $4,400 at an interest rate of 6% exact interest.The term of the loan is 72 days.1a. What is the exact interest?1b) What is the maturity value of the loan?2. Jane Dimas obtained a single-payment loan of $420 to pay a repair bill. She agreed to repay the loan in90 days at an interest rate of 6.25% ordinary interest2a. What is the ordinary interest?2b. What is the maturity value of the loan?

Exact interest is the interest calculated on the basis of the exact number of days between the date…

Answered: 1. Terry Bergolt's bank granted him a…

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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