Answered: 4) Suppose Michael has a simple…

4) Suppose Michael has a simple interest loan with a rate of 3.5% for 21 months. a. Find the principal that results in interest of $2,629.00. b. Calculate the maturity value of Michael's loan.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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4) Suppose Michael has a simple interest loan with a rate of 3.5% for 21 months.
a. Find the principal that results in interest of $2,629.00.
b. Calculate the maturity value of Michael's loan.

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