A loan of $10,000 is taken out on November 7, 2020 at a simple interest rate of r = 9%. The loan will be paid back on May 11, 2021. If the bank uses ordinary interest (the Banker's Rule), how much interest is charged? a $450.00 b $456.16 c $443.84 d $462.50
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- A 167 day simple interest loan for $10,456 has a maturity value of $10,961. What is the simple interest rate and the equivalent bank discount rate? Use Banker's RuleSuppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.Assume 2% interest rate. If $50 is put in the bank on May 1, 1988, how much will be in the bank on May 1, 2021? Assume 2% interest rate. If $50 is put in the bank on June 1, 1996, how much will be in the bank on June 1, 2021?
- Consider a $5,000, 6%, 180-day interest-bearing note and a non-interest- bearing note for the same amount and time period with a bank discount of 6%. From the borrower’s point of view, which is the better loan and why?A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% Your answer is correct. B. 9.79% C. 6.53% D. 16.32%Karen's Katering borrows $5,500 at 8.5% interest for 280 days. If the bank uses the exact interest method, how much interest will the bank collect? the options are: a. 358.63 b. 363.61 c. 376.95 d. 467.50
- A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest to the EAR charged by the bank? A. 8.16% B. 9.79% C. 6.53% D. 16.32%The company purchased the equipment 600,000. The interest rate of bank is 12,400. The loan is denominated in OMR, matures on March 31 2019. The spot rate of OMR 2.50. What is the value of interest expenses? Select one: a. None of the other points b. OMR 12,400 c. OMR 1,500,000 d. OMR 31,000Bank A pays 2% interest compoundedannually on deposits, while Bank B pays 1.75% compounded daily.a. Based on the EAR (or EFF%), which bank should you use?b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
- Asap2. A bank charges 11% discount on short term loan& Find the sum received by the borrowerwho requests Php1,500 from October 3, 2011 to March 01, 2012, Use exact simple interest.Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400 what is the actual interest rate on this note? a. 12.00% b. 10.00% c. 20.00% d. 22.50%