A loan of $10,000 is taken out on November 7, 2020 at a simple interest rate of r= 9%. Theloan 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

As per the Banker's Rule, interest is calculated as per the exact time (in days), taking 360 days…

Answered: A loan of $10,000 is taken out on…

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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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