A restaurant borrows $12,800 from a local bank for 5 months. The local bank charges simple interest at an annual rate of 1 of a year. Answer each part below. 12 7.3% for this loan. Assume each month is Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 5 months. ? (b) Assuming the restaurant doesn't make any payments, find the amount owed after 5 months.

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
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A restaurant borrows $12,800 from a local bank for 5 months. The local bank charges simple interest at an annual rate of
1
7.3% for this loan. Assume each month is
of a year. Answer each part below.
12
Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the
list of financial formulas.
(a) Find the interest that will be owed after 5 months.
$
(b) Assuming the restaurant doesn't make any payments, find the amount owed after 5 months.
Transcribed Image Text:A restaurant borrows $12,800 from a local bank for 5 months. The local bank charges simple interest at an annual rate of 1 7.3% for this loan. Assume each month is of a year. Answer each part below. 12 Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 5 months. $ (b) Assuming the restaurant doesn't make any payments, find the amount owed after 5 months.
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