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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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A: Answer

Concept explainers

Factors Affecting Housing Decision

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=
%

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