7. A struggling student takes out a $400 short term loan to buy mechatronics books. Their loan agreementsays they must pay back the loan within 2 weeks at 9% interest/2 weeks..a) What is the total amount to be paid back at the end of 2 weeks?b) If they can't pay it back within 2 weeks, the loan agreement states that the interest will compoundevery 2 weeks. What will be the amount required to pay back after 4 months (16 weeks)? Hint:Balance = Principal x (1 + Rate)", where N is the number of times interest is compounded.

Given information in the question Student take loan =$400 Loan rate =9%/2 week

Answered: 7. A struggling student takes out 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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