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(a) [C Suppose we borrowed €1,000 at 8% p.a. simple interest on July 1st, 2023. We then paid €300 on September 29th, 2023 towards our debt. Find the balance on October 29th, 2023 using the Merchant's rule. 5 (b) Show that a single payment of D= D1 + D2+ D3 due in t = Diti+ D2 t2+ D3 t3 D days will discharge a debt of D₁ due in t₁ days, D₂ due in t2 days, D3 due in tз days. Assume an annual simple interest rate i applies, < t2

(a) [C Suppose we borrowed €1,000 at 8% p.a. simple interest on July 1st, 2023. We then paid €300 on September 29th, 2023 towards our debt. Find the balance on October 29th, 2023 using the Merchant's rule. 5 (b) Show that a single payment of D= D1 + D2+ D3 due in t = Diti+ D2 t2+ D3 t3 D days will discharge a debt of D₁ due in t₁ days, D₂ due in t2 days, D3 due in tз days. Assume an annual simple interest rate i applies, < t2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) [C Suppose we borrowed €1,000 at 8% p.a. simple interest on July 1st, 2023. We then paid €300 on September 29th, 2023 towards our debt. Find the balance on October 29th, 2023 using the Merchant's rule. 5 (b) Show that a single payment of D= D1 + D2+ D3 due in t = Diti+ D2 t2+ D3 t3 D days will discharge a debt of D₁ due in t₁ days, D₂ due in t2 days, D3 due in tз days. Assume an annual simple interest rate i applies, < t2<t3 and tз is the comparison date.
Transcribed Image Text:(a) [C Suppose we borrowed €1,000 at 8% p.a. simple interest on July 1st, 2023. We then paid €300 on September 29th, 2023 towards our debt. Find the balance on October 29th, 2023 using the Merchant's rule. 5 (b) Show that a single payment of D= D1 + D2+ D3 due in t = Diti+ D2 t2+ D3 t3 D days will discharge a debt of D₁ due in t₁ days, D₂ due in t2 days, D3 due in tз days. Assume an annual simple interest rate i applies, < t2<t3 and tз is the comparison date.
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