A. You need a simple interest bridge loan to cover the costs of buying a new home while waiting to close on your old one. Yo need to finance $70,000 and bank will charge 7%. How much interest will you pay if you needed the loan for 2 months?
A. You need a simple interest bridge loan to cover the costs of buying a new home while waiting to close on your old one. Yo need to finance $70,000 and bank will charge 7%. How much interest will you pay if you needed the loan for 2 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
Section: Chapter Questions
Problem 1PS
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Question
A 1.
pla help intrest rates
![Objective [2.9]
A.
You need a simple interest bridge loan to cover the costs of
buying a new home while waiting to close on your old one. You
need to finance $70,000 and bank will charge 7%. How much
interest will you pay if you needed the loan for 2 months?
Interest =$
(nearest $1)
B.
Your friend needs a loan of $5,000 for 10 months. You tell him
for the simple interest loan service he needs to pay you back
$5,333.33. What is the simple interest rate on your friendly
loan?
Interest Rate=
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79d00fb9-d46a-46ed-896a-47e3c0e716d5%2Fda245cc1-6286-4e24-b339-622361e77345%2Fjhrb9u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Objective [2.9]
A.
You need a simple interest bridge loan to cover the costs of
buying a new home while waiting to close on your old one. You
need to finance $70,000 and bank will charge 7%. How much
interest will you pay if you needed the loan for 2 months?
Interest =$
(nearest $1)
B.
Your friend needs a loan of $5,000 for 10 months. You tell him
for the simple interest loan service he needs to pay you back
$5,333.33. What is the simple interest rate on your friendly
loan?
Interest Rate=
%
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